AIOFP canvasses advisers building election war chest

Mike Taylor

Managing Editor and Publisher

9 June 2023

Financial advises could have greater political influence if they had a financial war chest heading into the next Federal Election.

That appears to be the bottom line of a message from the Association of Independently Owned Financial Professionals executive director, Peter Johnston, in a message to member commenting on reports that superannuation fund executives will hear first and exclusively the Government’s approach to the Quality of Advice Review (QAR).

He said the reports that the Assistant Treasurer and Minister for Financial Services, Stephen Jones would be outlining the QAR approach to an Association of Superannuation Funds of Australia (ASFA) event should come as no surprise to advisers.

“It is time we learn from it and finally do something about it,” Johnston said in a message to AIOFP members.

“The harsh reality of the Australian political landscape is allowing any person or entity to make political donations of any description to any political party is a profound conflict and should be banned with criminal charge implications, but nothing is done about it since Federation in 1901.”

“The only section of society funding ALL political parties should be the Tax Payer, that ensures all Political parties will act in the best interests of Tax Payers NOT those who fund them – its not rocket science. You may recall Paul Keating said, ‘just follow the money trail…..’”

“The commencement of ICAC on July 1st would keep ‘the bastards honest’, but we need the Politicians to agree…..which is unlikely particularly when the defined benefit Super Pension [grandfathered of course!] was eliminated in 2004.”

“It is common knowledge that broadly the Institutions favour the Liberal Party and the Industry Super funds the ALP. Despite our support of the ALP in recent times with marginal seats etc, the millions they get from other sources puts us down the pecking order for ‘favours’, hence, the Super Fund function announcement decision on Tuesday.”

“What can we do about it?”

“Easy solution, if all Advisers banded together [to] pay $10 per week we will have $15,600,000 in 2 years ready to spend at the next election….[15,000 x $520 = $7,800,000 x2 without compounding implications].

“That will certainly get us up the pecking order!” Johnston said.