FOFA balance is right, says Shorten
The Assistant Treasurer and Minister for Financial Services, Bill Shorten (pictured), says the Government believes it has achieved the right balance with its Future of Financial Advice (FOFA) changes.
In an address to a Financial Services Council (FSC) function in Canberra this week, Shorten not only claimed the balance of the FOFA approach was right, he also exhorted the financial services industry to back the lifting of the superannuation guarantee to 12 per cent on the back of the Minerals Resource Rent Tax.
Acknowledging that the Government had had some “useful and frank discussions” with the FSC, Shorten said: “When it comes to financial advice we think the FOFA package gets the balance right and is absolutely in the interests of consumers – giving them a better deal and building greater trust.”
“So we also think it’s in the longer-term interests of the financial services industry,” he added.
The minister pointed to recent Treasury forecasts with respect to Australian retirement, but made clear that they were dependent on lifting the superannuation guarantee to 12 per cent – along with efficiencies such as SuperStream.
“This is why the Mineral Rent Resource Tax is so important to our nation’s future,” he said. “And here’s where the unacted-upon pressures get as concerning, as the reforms are compelling.”
AUTHOR
Mike Taylor
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