Greater access to professional advice could deliver more than half a trillion dollars to the Australian economy, reduce spending on Age Pension and increasing incomes, according to research from CPA Australia and CoreData.
The study found that if properly implemented professional advice was available to all Australians, the economic uplift could be worth $630.3 billion a year, while Age Pension spending would be reduced by 21.6%.
Dr Jane Rennie, CPA Australia general manager external affairs, said over 60% of the Australian population did not currently receive professional advice.
“This means that millions of people and small and medium-sized businesses (SMEs) are on their own when it comes to managing some of the most stressful and complicated aspects of our lives,” Rennie said.
“While the potential economic benefits are tremendous, realistically it’s unlikely we will ever have a fully advised population.
“However, any increase in the uptake of professional advice from its current level could deliver an economic windfall.
“If an additional 10% of the population received properly implemented professional advice, the potential contribution to Australia’s economy could be approximately $112.8 billion per year.”
The research showed benefits for those receiving advice, as it could add another 30.6% ($24,716 on average) to a person’s income.
“The financial benefits are even greater for young people, who could boost their income by more than 40%, and retirees who could gain an additional 35.7% in their hip pockets,” Rennie said.
Rennie said consumers and SMEs viewed professional advice very differently to lawmakers.
“The economic and health benefits of seeking professional advice are compelling, which begs the question, why don’t more Australians seek professional advice? Structural issues seem to be deterring people from seeking professional advice,” Rennie said.
“They expect to see one qualified adviser for a range of taxation, business and financial advice needs, but the regulatory framework isn’t designed for this.”
CPA Australia surveyed 1,244 consumers and 815 SMEs about the intangible benefits of receiving professional advice.
