Budget 2022: What’s new for advisers?
The Budget was light on measures for advisers but two initiatives need to be on their radar when it comes to clients’ portfolios.
The industry had previously hoped for changes to the Compensation Scheme of Last Resort, the Australian Securities and Investments Commission (ASIC) levy and for superannuation to be paid on paid parental leave.
However, this did not mean there was nothing for advisers this year.
Grace Bacon, director of financial services at RSM Australia, said advisers would need to be across changes to the downsizer contribution and the increase to the income test threshold for the Commonwealth Seniors Health Care Card.
“It’s critical for financial advisers to remain proactive in reviewing their client situations. They will be able to talk to clients about ensuring they can take advantage of these new Budget measures, as they are measures clients may not previously have been eligible for or aware of.
“For example, the increase in the income threshold for the Commonwealth Senior Health Care Card has created opportunities for many older Australians to qualify for this benefit. This will help them combat the current rising cost of living pressures by reducing their cost of healthcare, utilities and transport. They may also be eligible for ad-hoc economic support payments.”
Regarding the unannounced measures, the Financial Planning Association of Australia said it would continue to engage with the Government on these issues.
Chief executive, Sarah Abood, said: “The FPA will continue to engage with the government in advance of the May 2023 federal budget on a number of issues that are important to our members, including broadening the base and managing the costs of its proposed Compensation Scheme of Last Resort (CSLR), extending the freeze on the ASIC levy for another year, broad tax deductibility of financial advice, and for the Australian Taxation Office and Centrelink to improve their online access arrangements to ensure financial planners are able to act on behalf of their clients.”
AUTHOR
Laura Dew
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
