FAAA baulks at another industry levy proposal
Financial advisers are already over-exposed to industry funding levies and the Financial Advice Association of Australia (FAAA) is urging against the imposition of another one – this time covering privacy regulation.
In a submission responding to a Senate review of new privacy legislation, the FAAA has bluntly stated that notwithstanding the recommendations contained in the Privacy Act Review Report the work of the Office of the Australian Information Commissioner (OAIC) should not be funded by an industry levy.
It said the Government should consider other options for funding the OAIC.
The FAAA submission to the Senate Legal and Constitutional Affairs Committee noted that “financial advice is one of the most tightly regulated professions in Australia” ad that “due to the high existing regulatory burden the cost impact on financial advisers and the knock-on cost to consumers” a cautious approach to more regulation is required.
On the question of industry funding, the FAAA submission said the Government Response to the Privacy Act Review suggested that consideration would be given to an industry funding model for the OAIC but strongly urged against such a move.
“….whilst it is important that the work of the OAIC is properly funded, we would caution against the use of industry funding for the OAIC as, due to the breadth of economic activity where personal data is utilised, it is not clear how this could be effectively targeted or apportioned,” the submission said.
“This is likely to also increase the costs of trading for small businesses, where the regulatory burden already falls disproportionately. This would impose a double cost for businesses incurring increased compliance expense plus an industry levy. Any industry levy would flow through to increase the cost of services for consumers.”
Surely this is a joke ? Another levy ?
Another day, another joke out of Canberra. Absolute garbage.
When does this crap end?
Happy to pay a Levy for every Govt Service.
We just stop paying Income tax, GST, Payroll tax, Super Tax, etc 🙂
Let’s make Advice more affordable says Canberra bureaucratic buffoons = Levies!
This just goes to show the contempt and distain by regulators for the advice sector. A never-ending pole on stuff them!
This is the sort of rubbish that comes out of the modern version of Treasury advice. The boys over in Treasury seem to think that advisers make a matzoh and what’s another levy. They also of course would prefer to see Big companies providing advice and not the self-employed independent adviser force that we have today.
A limited number of AFSL’s has long been ASICs model, about 100 AFSL’s would be fine
And remember, Mr Jones has an office full of these Treasury people. There’s not a lot of common sense amongst that lot.
Here comes another moral hazard. It just encourages the bureaucracy to bloat at the expense of productivity and prosperity.
Another levy on financial advisers. This is just blatant persecution.
Treasury might as well get the longest stick in the bush because they clearly enjoy flogging advisers with bogus Levi’s. The income tax burden in Australia is already enormous, and these clowns can’t find the money to fund their own ideas? just pathetic !!!!