ASFA, the voice of super, welcomes the Federal Government’s release of draft legislation on certain components of the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms.
These changes represent a significant step forward in providing Australians with greater access to affordable, quality financial advice – helping to secure their financial future and support a dignified retirement.
“The super sector believes advice shouldn’t be a luxury – it should be a fundamental part of the retirement journey,” said ASFA CEO Mary Delahunty.
“The second tranche of the DBFO reforms are a meaningful investment in the financial wellbeing of Australians. By creating opportunities for more people to access high-quality financial guidance, the government is building a stronger foundation for all Australians to be able to achieve dignity in retirement.
“ASFA is committed to ensuring all Australians can access quality, affordable financial advice – because good advice is good retirement policy,” Ms Delahunty said.
This announcement builds on the recommendations of Michelle Levy’s Quality of Advice Review and extensive consultations across sector and consumer groups.
The Tranche 2 reforms are designed to modernise the financial advice framework, making advice more accessible, affordable and tailored to individual needs.
“ASFA will continue working with the sector and the Government to progress this package.
The collaboration to date has been a testament to the broad commitment all ASFA members, associations and the Government have to ensuring more Australians have access to help with their retirement.”
ASFA research released last year revealed that one in two Australians have never accessed advice on preparing for retirement, reinforcing the need for quality, trusted financial advice to be more accessible and affordable.
“Financial advice is a critical ingredient in helping Australians build and protect their retirement savings. These reforms will empower more Australians to plan for their financial journey with confidence, enabling them to enjoy the security and dignity they deserve in later years,” said Ms Delahunty.
ASFA welcomes particularly the key aspects of Tranche 2 which has been released in draft legislation form today, including:
- Greater clarity on the rules on what advice topics can be collectively charged for via superannuation.
- Allowing superannuation funds to provide targeted prompts (known as nudging) to members to drive greater engagement with superannuation at key life stages.
We also welcome the further detailed consultation on:
- The New Class of Adviser (NCAs), which the Minister acknowledges is ‘vital’ to allowing superannuation funds and others to expand the supply of quality and affordable advice to consumers.
- Reforming the best interests duty and removing the safe harbour steps – to provide advisers with confidence to deliver appropriately scaled advice.
ASFA will continue to work with the Government and the sector as these reforms are progressed, noting this consultation closes on 2 May.
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
