Government ‘midterm blues’ good for advisers: AIOFP

In an email addressed to members, the Association of Independently Owned Financial Professionals (AIOFP) has reiterated its stance that turmoil in Canberra is positive news for advisers and their ability to lobby for favourable outcomes.

Referring to media reports around the government acquiescing to Liberal Party demands, particularly around supervision of individuals released following a recent High Court decision, AIOFP executive director Peter Johnston said politicians might start listening to the advice community.

“The ALP are experiencing the customary ‘midterm blues’ over some critical issues and Opposition Leader Peter Dutton has seized upon it very likely triggering the ‘re-election’ phase for the 2025 (perhaps late 2024) federal election in the near future,” Mr Johnston said.

“This is good news for the advice community and their clients. Politicians will now start actually listening to issues that may just affect their seat or their party. Remember, over 90 per cent of politicians are not in the old Pension Super Scheme and a loss of their seat is a loss of their regular income.”

Pointing to a recent survey conducted by CoreData on behalf of the AIOFP, he added that now is the time to engage clients to garner “support against either side of politics that do not agree to amend the red tape or policies that directly affect their financial position”.

“The 87 per cent positive outcome to this question in the survey is pivotal to our quest to get bipartisan agreement to our desired outcomes before the next election,” Mr Johnston said.

“This same approach worked in 2022–23 with our Education Pathways legislation and the current political environment will favour it working again.”

This is not the first time Mr Johnston has advocated for the value of a tightly contested election favouring advisers, also raising the issue following the Fadden byelection in July.

In his opening address to the AIOFP conference in Bangkok, Mr Johnston said the Fadden result and a swing back to the Liberals have done the advice community a “huge favour”.

“It is no longer a one-horse race at the 2025 election, which is a good thing. It means both major parties will be doing what all parties must do going into an election – tout for votes,” he said in July.

According to Mr Johnston, the result is also a positive outcome for the nation’s democratic health, stating that a “competitive opposition is needed to retain equilibrium”.

“If you then throw the decision by the Albanese government to passionately back the ‘Voice’ referendum, some anti-ALP feelings developing in WA, rising living costs, interest rates and a worsening global economic climate into the political melting pot, it suggests the 2025 election will be an intensive and closely fought battle,” he said.

“This is a great outcome for the AIOFP, it presents a significant political opportunity to again capitalise upon and it just may mean the WA-based advisers will play a pivotal role in who wins the next federal election.”