Annual renewals bill passes House of Reps

The bill was debated in the House of Representatives on Monday afternoon and a third reading proposed after the lower house voted 65 in favour of the bill and 56 against.

Labor had voted against the bill in a move of disapproval towards the government's delays in passing royal commission legislation, with shadow Treasurer Jim Chalmers saying it had "taken far longer than promised" to implement the inquiry's recommendations, including to establish a compensation scheme of last resort.

The news comes following criticisms from the advice industry as well as a parliamentary committee around some of the specifics of the bill, with the AFA saying the bill did not allow for the practicalities of licensees and product providers' fee systems and this needed to be urgently addressed.

The standing committee for the scrutiny of bills has also criticised the harsh penalties imposed on advisers for improper record keeping in the legislation, while the AIOFP has said it will lobby key cross-bench senators to remove their support for the bill.