Labor links super to affordable advice delivery

The Australian Labor Party has signalled that it believes superannuation represents a key to the delivery of affordable financial advice.

Labor’s Shadow Minister for Financial Services, Stephen Jones linked fixing the “mess” around financial advice to the Federal Opposition’s broader approach on superannuation.

In doing so, Jones declared that a future Labor Government would not favour industry funds over retail funds and wanted to see an end to the class wars between both superannuation sectors.

“Competition, innovation, and performance will all be enhanced by a strong retail sector,” he told the Association of Superannuation Funds of Australia (ASFA) conference on the Gold Coast.

“We want to see strength in all superannuation funds. A rising tide that lifts all boats. And we will seek to fix the mess made by the Government in financial advice.”

“It is a deep irony that – thanks to Labor’s universal superannuation system – Australians have never been retiring with more wealth – but have never found it harder to secure affordable financial advice,” Jones said. “This will be a key priority for Labor in government.”

“We want to ensure that Australians can access high-quality, safe, professional advice – at a price point that works for them.”

The Labor spokesman also signalled that a Labor Government would be revisiting the superannuation fund performance test overseen by the Australian Prudential Regulation Authority (APRA) with a view to removing unintended consequences.

“We’ll ensure that funds are meeting clear performance standards – without setting out a prescriptive path to success, or giving future Treasurers the power to direct superannuation funding. We will review the existing performance benchmarks to remove unintended consequences and perverse results,” he said.