‘Less government, more personal responsibility’: Taylor advocates deregulation for progress in advice

The shadow treasurer believes less government intervention and more personal responsibility are key to addressing Australia's economic and social challenges.

In an upcoming ifa podcast, Taylor argues that this principle extends to financial advice as well, noting that empowering professionals, while simultaneously scaling back excessive regulations, is an essential strategy for fostering growth and social progress.

“We do need to scroll back the regulation that is most egregious,” Taylor said.

When asked to comment on the Coalition’s negative perception among advisers due to past events, such as the royal commission, he acknowledged that the party recognises "there had been some overreach".

“I'm a big believer in getting government out of the way as much as you can,” Taylor said.

“You got to make the case for government to be involved in things, then let people do what they want to do. I’m a huge believer in personal responsibility in allowing professionals to do their job and that ultimately, if they do their job badly, clients will hold them to account and they should.

“I've worked in professional services for much of my career, so I understand that dynamic and I think it's a very powerful one and that's what we've got to get back to. And that does mean scrolling back some of the madness.”

Despite the opposition's strong criticism of Labor's handling of financial advice, especially regarding the Quality of Advice Review and its delayed response, Taylor praised the government for making "some" progress in reducing the excessive bureaucracy that had spiralled "completely out of control."

But, he said, “we need a lot more and I'm going to keep advocating for it”.

“I make no apology for that,” Taylor assured.

“If that's different from what my colleagues have done in the past, so be it. I'm going to do what I think is right and I certainly think getting back to a successful advice sector that Australians can afford is urgent right now.”

Taylor pledged that if the Coalition wins the upcoming federal election, they will fully implement the Quality of Advice Review.

“We'll get on with that,” he said, adding that “we recognise that that's the beginning, not the end”.

“There are other important issues that already I've been discussing with the industry that have come up, like the extra costs that are being imposed, and so we're cognisant of that and we're working our way through that. That's only something that's popped up in the last couple of weeks. So, we'll work our way through that as well.”

Coming back to the regulatory overreach, Taylor reiterated: “The commitment on our side, more generally in financial services, is to recognise that there has been regulatory overreach, that we have got a whole group of Australians now that are under-advised, underinsured and underbanked, and that we've got to have more accessible financial services and advice if Australians are to have the prosperity they deserve.

“And that means scrolling back some of the madness. And we'll keep moving down that path and talking with the industry and reengaging, which is what I've sought to do.

“I've actually enjoyed being in this role for a period of time. Luke [Howarth], of course, will take a bigger role over the next 12 months or so, but it's given me an opportunity to engage and really get my head around where we need to go. And I recognise there's wonderful people in the sector wanting to do good work and we've got to empower them to do that.”

Tune in to our podcast from this Wednesday afternoon.