Budget 2023: Advice industry reacts to policies

The Financial Services Council (FSC) and Financial Advice Association Australia (FAAA) have welcomed the 2023 budget from Treasurer Jim Chalmers but feel there is a lack of information for advisers.

FAAA’s chief executive, Sarah Abood, said there had been a “few surprises” for the industry as much as the content had been pre-flagged. This included the increase in the tax rate for higher super balances and the introduction of payday super. 

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She questioned the impact of last night’s budget on the financial advice sector and the levy payable by advisers to the Australian Securities and Investments Commission (ASIC).

“We are also very keen to see more clarity soon from the government on the impact of the ASIC levy on the financial advice sector. The costs for advice businesses continue to rise, and it is a high priority to minimise the impact of the levy being unfrozen from the current financial year. A great way to make financial advice more affordable for consumers is to reduce the business costs involved in the provision of advice — and this is one important way the government can assist.” 
 
She also noted changes to the Financial Regulator Assessment Authority, which would see it review the regulators ASIC and the Australian Prudential Regulation Authority (APRA) every five years rather than two had not received industry consultation.

“It is disappointing to see this highlighted as a budget saving in the context of recent regulator reviews and when no consultation with industry has been undertaken.”

At the FSC, it welcomed measures in support of the sustainable finance agenda, the interfunding exemption which would help overseas fund managers and the uplift in cyber security capabilities.

FSC’s chief executive, Blake Briggs, said: “The FSC congratulates the government on its fiscal discipline that delivers a significant improvement in the 2022–23 budget position and puts Australia in a strong position going into a more challenging economic environment.

“Growth-orientated policies will offset global economic headwinds and help the government maintain a balanced budget over the medium term, without resorting to further tax increases.”