Government has made changes ‘very selectively’ to benefit industry super: Taylor

Speaking on the latest episode of the ifa Show, shadow treasurer Angus Taylor expressed concerns around the Labor government’s handling of the Quality of Advice Review (QAR) recommendations and the subsequent roll out of the Delivering Better Financial Outcomes reforms.

“Well, it probably wouldn’t surprise you that I am deeply concerned about where it’s at. I’m deeply concerned about the loss of the number of advisers. We’re about half of where we were, and that’s having a big impact,” he said.

Taylor said he saw Michelle Levy’s recommendations as an opportunity to improve the advice industry and Australians’ access to it, however, the government’s response has fallen short and created further confusion and driven the cost up.

“We’ve got many Australians that are under-advised now, and we want to get this sector really firing again. I saw Levy as a chance to do that,” he said.

“It was, I think, a good report. You might not agree with all of it, but I think it was absolutely heading in the right direction, and we wanted it implemented in full as quickly as possible.”

Taylor insinuated that the government has been motivated to implement changes that benefit super funds while intentionally dragging their feet on other matters, all the while causing further issues within the industry.

“What Labor has done is made the call to do it very selectively. So, some areas, which are generally the areas kindest to industry super funds, they’ve done quickly. And other areas, they’ve been much less inclined to go,” he said.

“They’ve made changes; the qualified adviser piece, which is causing a lot of confusion and problems. There has been drafting errors along the way. And I think the result of it is it’s not giving the clarity to the industry it needs to re-establish itself. That is not the way to do it.”

Further criticising the government’s handling of financial advice, Taylor added: “We’ve got to get this sector really moving again. We think there was a good pathway, and sadly, that’s not what’s happening.”

Acknowledging past mishandling

Taylor acknowledged the challenges advisers have and continue to go through due to the mishandling of the industry and the role the previous Coalition government had in creating and exacerbating some of the challenges.

“I’ve heard it many, many times and I think it’s well-placed grief because, as I say, the sector had to go through a period of some cleansing of some bad behaviour that had happened in the past,” he said.

“The truth was, there was some egregious behaviour going back.”

Noting the misconduct within the advice industry prior to the royal commission, Taylor said now is the time to look forward and enact change for the industry.

“The majority of people were behaving well and advising incredibly professionally. Some bad eggs in industries can have some adverse circumstances and they clearly did. But the job now is to look ahead and see what’s needed,” he added.

“And that does mean scrolling back some of the madness? I mean, I’m pleased that there are some parts that Labor is committed to. Some of the paperwork and bureaucracy that has been there just got completely out of control.

“And we are seeing some movement on that, but we need a lot more. And I’m gonna keep advocating for it. I make no apology for that.”