Shape of DBFO Tranche 2 visible before Christmas
Financial advisers are likely to see the exposure draft of the second tranche of the Defining Better Financial Outcome package before Christmas but the Government will struggle to introduce the bill before the next Federal Election.
The Assistant Treasurer and Minister for Financial Services, Stephen Jones has confirmed to a Financial Newswire conference that the legislation is currently in the hands of legislative drafters and he envisages it being seen by financial advisers “in weeks rather than months”.
However, with Parliament due to recess for the Christmas/New Year break at the end of next week, the legislation is unlikely to be debated in the Parliament before the end of February and will be facing into the timetable of the Federal Election due in May.
However, Jones said he believed advisers could expect to see the legislation before Christmas.
“I feel like a repeating parrot when I say this – we are an ambitious Government with a big legislative agenda and not always a cooperative Senate so there is a lot of competing stuff,” the minister said while repeating his references to a shortage of legislative drafters.
The Financial Advice Association of Australia (FAAA) believes the Tranche two legislation will include the rationalisation of the Best Interests Duty, removal of the best interest duty ‘safe harbour’, rationalisation of State of Advice (SOA) changes documents and detail around the new class of adviser.
There is an expectation that the legislation will pass the Parliament by the second half of 2025 and even with a change of Government there is every prospect of this happening with the Opposition Liberal/National Party signalling their support for the changes.
The Opposition late last month introduced a private members bill aiming to deliver on some of the recommendations of the Quality of Advice Review around SOAs and Safe Harbour and, in doing so, was critical of the time being taken by the Government in delivering the second tranche.
Well, This is not a surprise. Kick the can down the road.
Bigger Fish with Bigger Cheques are more important.
Let’s not worry about the 5 million Australians who need advice
Which can reduce the pressure on the Government.
Keep the blow torch on Advisers because the Regulators must have a Whipping boy.
We as an industry need to start playing the same games as the big End of town.
No doubt that I’ll be going into the Xmas break wondering why in the hell I bothered doing a masters degree…
The whole concept of another class of financial advisers who don’t need to meet the same red-tape requirements, or education requirements, and who are paid from the product manufacturer rather than the client, takes the industry back 20 years.
The ignorance of politicians and their bureaucrats is incredible.
All in the name of access to advice….
But in fully qualified adviser land… oh no, you cannot have that…. we must protect consumers.
Australia is a joke.