Stephen Miller

I’m not sure that the news flow of the last week or so has managed to advance whatever one may have been thinking about the decision of the Reserve Bank of Australia (RBA) Monetary Policy Board (MPB) at its next meeting in August.

The minutes from the June meeting noted that policy was ‘somewhat’ restrictive but at the same time exhibited some handwringing around elevated inflation expectations. What might have been at the forefront of the RBA Board’s contemplations was the Fair Work Commission (FWC) decision to award a 4.75 per cent increase in the minimum wage and awards. That such an increase occurred against a backdrop of ongoing abject productivity growth and how it might inform wider wage negotiations is clearly a concern going forward.

The May monthly consumer price index report (CPI) was not as bad as feared and is probably consistent with the most recently issued RBA forecasts back in May.

Nevertheless, Australian inflation remains elevated. Trimmed-mean consumer price index (CPI) inflation in Australia is currently running at 3.6 per cent. That puts Australia at the top the developed country inflation league. That is not a (developed) World Cup we should want to win!

Some more positive news since the June meeting has been declining oil prices which might mitigate the dangers of oil price inflation broadening into something even more pernicious.

But Australia’s inflation problem is way more than just oil prices, as illustrated by the aforementioned adverse comparison of Australian inflation with elsewhere in the developed world.

Jim Chalmers might have us believe that the Middle-East tensions and the attendant ratcheting up of the price of oil is the primary driver of our current inflation challenge, and yes there is a skerrick of truth in that, at least in absolute terms.

But the stark reality is Australia has a structural homegrown inflation proclivity.

That homegrown structural inflation proclivity reflects, inter alia, the interplay of regulatory creep in labour and goods markets that impose costs on businesses, part of which are passed on to consumers. The regulatory regime is also reflected in the abject productivity growth which makes the task of inflation containment all the harder.

As I’ve stated in the past, this state of affairs is not just down to the current Federal Government. Rather it reflects a long-standing policy deficiency since the end of the Hawke-Keating and Howard-Costello eras. Governments (both State and Federal and Labor and Coalition) have long averted their eyes from addressing productivity enhancing policy measures. Just as importantly, little attention has been given to avoiding productivity diminishing measures attaching to (mostly well-intentioned but poorly thought out) regulatory oversight of labour and goods markets.

Sure, (to paraphrase the Prime Minister) people don’t sit around the kitchen table talking about low (or negative) productivity growth. But productivity remains central to enhancing standards of living not the least through mitigating inflation.

The decision to “pause and reflect” at the June meeting was understandable given concerns about looming cyclical fragility. In that context it reflected a view that there was some utility in using the “space” provided by preceding policy rate increases to assess how the economy was adjusting and the impact of disruptions.

However, both the RBA minutes and Governor Bullock’s comments would indicate that the policy rate might still need to be increased at a later date. That reflects, inter alia, governments’ inability to support the RBA’s inflation battle with supportive structural policies.

So, in determining the course of the policy rate over coming months, the RBA faces considerable challenges having to negotiate a tricky (dare I say “narrow”) path between structural inflation factors and cyclical fragility.

The June CPI release later this month looms as a key staging post in how the negotiation of that path may evolve.

Eurozone June “flash” CPI: ECB to stand pat in July

Overnight, Euro area CPI inflation for June came in a little lower than expected at 2.8 per cent at the headline level (compared with 3 per cent expected). The core reading was also better than expected at 2.4 per cent (2.6 per cent expected).

While inflation remains above the ECB target of 2 per cent, there now seems almost no prospect of a policy rate (deposit facility) increase from the current 2.25 per cent at the July 22-23^rd meeting.

Speaking at the ECB’s Sintra Conference earlier in the week, ECB President Lagarde stated that she thought the ECB had gone some way to making the Eurozone economy less vulnerable to inflation shocks, perhaps reflecting a more rigorous financial framework.  She also noted that tensions in the Middle East had subsided (even if resolution was ‘far from assured’). Overnight at that same conference, Lagarde stated that she thought the risks to inflation and growth are ‘broadly balanced’ which would indicate that she sees no compelling case for a policy rate rise. (She also expressed a scepticism regarding the utility of “forward guidance” and other features of COVID era monetary policy such as “quantitative easing”.)

Other ECB decisionmakers are less sanguine.

Markets see the prospect of a hike in as closer to 30 per cent in September.

The latest set of ECB forecasts were based on Brent oil prices of around $US82 per barrel. It is currently at circa $US73 per barrel giving the ECB some “space” to digest whether further inflation pressures might necessitate a further increase.

Coming up: US non-farm payrolls tonight (ahead of Independence Day holiday)

As mentioned above, even more benign looking measures of inflation such as the Dallas Fed ‘s trimmed mean core PCE measure is, at was 2.4 per cent in May, still a way above the 2 per cent Fed “inflation” target.

And progress on the inflation front has been excruciatingly slow.

So absent some sharp and unforeseen deterioration in the labour market a policy rate cut hardly looks proximate.

Tonight sees the release of the June non-farm payrolls report ahead of Friday’s Independence Day holiday.

Indications are that the labour market remains in satisfactory condition.

The May Job Openings and Labor Turnover survey (JOLTs) report saw openings mostly unchanged at a healthy enough 7.6m.

The ADP June payrolls report showed a solid enough gain of 98k (even if lower than the 113k increase expected). The ADP report is sometimes dismissed (too easily in my view) because of its poor record in foreshadowing month-to-month movements in the Bureau of Labor Statistics payrolls measure. However, it is just as good a measure of the state of the labour market as the payrolls report.

The June Institute of Supply Management (ISM) manufacturing index (PMI) released overnight paints a reasonably satisfactory picture of the US manufacturing sector: the index coming in unchanged at 53.3. The employment component increased to to 49.7 from 48.6 in May (50.0 is the neutral point between expansion and contraction). The prices component declined to 73.0 from 82.1 in May. That is still elevated but maybe a harbinger of some easing of price pressures to come.  

A consensus outcome for payrolls of a circa 110k increase in employment and an unemployment rate unchanged at 4.3 per cent with average earnings growth of 3.5 per cent is not going to move the dial for any Fed members.

By Stephen Miller, investment strategist

The post RBA minutes: stayin’ live appeared first on AdviserVoice.

A rather subdued Federal Budget has been delivered in Canberra on the eve of the announcement of the federal election.

This was a Budget that Treasurer Jim Chalmers, up until ex-Tropical Cyclone Alfred, wasn’t expecting to deliver and it was light on detail. By way of comparison, last year’s budget ran to 200 pages whereas this year’s comes in at just 93 pages.

The FAAA says there was very little for financial services, let alone financial advisers, and nothing to address the serious issue of the ever-increasing cost of providing advice, including the growing costs arising from the Compensation Scheme of Last Resort (CSLR).

Some areas that could affect financial advisers in their work with clients include:

• The Tax Practitioner Board is being beefed-up from 1 July 2025, with additional focus on tax practitioner compliance. The government expects this to increase tax receipts by $47 million.
• Surprise tax cuts were announced, with all Australian income tax payers to get a 1% tax cut in the first tax bracket next financial year and another 1% the year after. The 1% cut equates to $268 per annum per tax payer.
• A raft of measures to enforce the ban on foreign home ownership were announced.
• $717 million additional funding is amongst a suite of spends to better enable the ATO to clamp down on tax avoidance.
• ASIC will receive $207 million to spend on updating its business registers.

FAAA general manager, policy, advocacy and standards Phil Anderson said: “There is very little news in this Federal Budget and it is light on detail. Notable omissions for our profession include any CSLR or ASIC levy relief and no action on access to the ATO Portal.

“The lack of detail in the Budget follows the recent release (on Friday 21 March) of the next tranche of draft legislation for the Delivering Better Financial Outcomes reforms, which were also frustrating in their lack of scope and detail.

“It is disappointing that the government has not been able to move ahead on a clear pathway in improving the accessibility and affordability of financial advice, at a time when an increasing number of Australians would benefit from professional quality advice,” Mr Anderson says.

As a measure of the lack of relevant detail for the financial advice profession, in Budget Paper Number 2 (where details of all the spending commitments are found) there is no mention of financial advice or the CSLR, and only one mention of ASIC and two mentions of superannuation.

The post A surprise small tax cut, but little else for financial advisers in the 2025 Federal Budget appeared first on AdviserVoice.

These engagements provided a platform for an open exchange of issues, ideas, and perspectives, ensuring that the voices and concerns of DECA’s members were heard.

“As part of its commitment to being the leading body for Australia’s digital economy, DECA continues to foster bipartisan collaboration within the Australian political landscape,” said Amy-Rose Goodey, Managing Director of DECA.

“Our recent research, unveiled at Blockchain Week last month, confirmed that fit-for-purpose regulation is the single most pressing concern for industry participants. As a member-focused organisation, we are dedicated to listening to our members and providing unique opportunities to proactively engage in regulatory dialogue. These meetings were a testament to that commitment.

“We are pleased that our members welcomed the opportunity and that positive discussions took place,” Ms Goodey added.

Dr. Andrew Charlton MP, Federal Member for Parramatta, and Chair of Parliamentary Friends of Blockchain said: “Blockchain technology has the potential to transform Australia’s economy, adding up to $60 billion annually. Its ability to enhance transparency, trust, and efficiency across sectors like logistics, healthcare, and finance is unparalleled.

Dr. Charlton emphasised the need for a modern regulatory framework that creates a conducive environment for innovation, jobs, and investment while ensuring consumer protection.

“Australia’s strengths as a regional financial hub must be leveraged in the digital economy. Developing digital skills and attracting tech talent through strategic action and collaboration between government and industry is essential to unlocking the full potential of blockchain technology for Australia,” he further added.

However, Caroline Bowler, CEO of the leading home-grown cryptocurrency exchange BTC Markets, expressed concerns about the pace at which Australia is advancing on the legislative front compared to the rest of the world.

“Based on my recent travels to Southeast Asia, Europe, and the US this year, it is evident that financial services worldwide have progressed in the crypto and digital assets space, while we continue to play catch-up locally,” Ms. Bowler stated.

“As a home-grown exchange, we observe that for Australian businesses to develop and seize the opportunities present globally, we must look at offshore markets, thereby taking skills, intellectual property, and investment overseas.”

Government leaders in attendance acknowledged these concerns, recognising that such an outcome would be detrimental to the Australian economy. They were receptive to industry calls for prioritising digital financial services, balanced with the ongoing legislative agenda.

Jackson Zeng, CEO of cryptocurrency brokerage Caleb and Brown, endorsed The Treasury’s October 2023 proposal paper titled “Regulating Digital Asset Platforms,” which advocates for regulating Digital Asset Service Providers under the Australian Financial Services Licence (AFSL).

“Digital Asset Service Provider members unanimously agree that addressing custody risk remains the highest priority for millions of Australian consumers. The introduction of ‘minimum standards for holding assets’ and ‘additional standards for token holders’ addresses this primary concern and should be prioritised for parliamentary legislation,” said Mr. Zeng.​

Lisa Wade, CEO of DigitalX, the ASX-listed fund manager specialising in cryptocurrencies, shared her optimism following the recent engagements.

“These discussions gave me hope that the government is truly listening and recognises our vital role in the future Australian economy—and that the future of the economy is digital. I saw clearly that as an industry, we must collaborate with the government to overcome significant capacity hurdles.

“What was inspiring to me is that there is a pathway for partnership. I believe DECA can live up to its new name and drive the work forward by assisting the government in drafting the legislation we need,” Ms. Wade said.

A recent survey conducted by Protocol Theory and commissioned by DECA found that fit-for-purpose regulation was “extremely important” to 57% of those surveyed and “very important” to a further 31%. This underscores the critical need for Australia to advance its legislative framework to ensure the growth and sustainability of its digital economy.

The post DECA members engage in crucial dialogues on cryptocurrency regulation with Australian Government leaders appeared first on AdviserVoice.

Mike Lawrence

The Customer Owned Banking Association (COBA) and its members are pleased to welcome the Government’s decision to introduce a Financial Sector Regulatory Initiatives Grid following extensive advocacy by COBA.

In yesterday’s announcement, Treasurer Jim Chalmers and Minister for Financial Services Stephen Jones formally thanked COBA for its work in helping shape the reform. The Regulatory Grid will bring major financial services regulators together to schedule regulatory change, creating benefits across the whole financial services sector including greater transparency and the ability to better plan and allocate resources.

COBA CEO Mike Lawrence said: “We are delighted to see the Government press ahead with an Australian Financial Sector Initiatives Regulatory Grid. This will allow customer-owned banks to better forecast staffing and resource requirements, plan for regulatory change, and better compete with larger banks. We all know that a competitive banking market benefits all Australians and creates a more dynamic finance industry.”

As part of a submission on behalf of COBA’s 55 members to the House of Representatives Standing Committee on Economics inquiry into promoting economic dynamism, competition and business formation, COBA highlighted the challenges customer-owned banks must navigate in the face of increasing regulatory requirements, with smaller banking institutions finding it more difficult and expensive to navigate a fragmented and uncoordinated regulatory landscape.

“The relatively small size of some customer-owned banks compared to their shareholder-owned counterparts makes it harder to keep up with the tsunami of regulatory change we are seeing in the financial services sector.  This impacts their ability to compete and is key to why we have been advocating for this initiative for a number of years. We look forward to working with the Government on the design to make sure that the Regulatory Grid delivers productivity, transparency, and accountability benefits,” Mr Lawrence said.

“Significant regulatory change will continue as the risk environment becomes more complex and dynamic. The introduction of a Regulatory Grid means better coordination and mapping of regulation, which will help banks and credit unions manage this burden and maintain critical investments in customer-focused initiatives,” he added.

COBA looks forward to further discussions and collaboration with the Government and regulators to ensure the customer-owned banking sector can thrive, providing increased competition and strong, innovative banking solutions for consumers in Australia.

Mike Lawrence said: “The customer-owned sector is essential to keeping Australian banking competitive, and ensuring customers have options when it comes to first-class service and products. COBA will continue to advocate for more recognition of the customer-owned banking sector overall, and the diversity of banking business models.”

The post Customer-owned banks welcome introduction of Regulatory Grid appeared first on AdviserVoice.

Andrew Swan

China’s about-turn on its COVID restrictions late last year has had profound impacts on its economy and those of the Asian countries that trade closely with it.

Federal Treasurer Jim Chalmers went so far to say that China’s slowing growth was one of the major economic challenges facing Australia at the start of 2023.

The impacts of COVID in China have been real and terrible for many; however we are optimistic that an open China will ultimately be good for economic growth and we believe the Chinese economy will recover this year. It will be in the coming weeks and months that we will get a much better feel for what that recovery will look like.

Chinese economy

With regard to a Chinese economic recovery, we see the potential for two main options playing out. It will be either a strong, broad recovery or a narrow, shallow recovery.

We at Man GLG are in the slower recovery camp. The argument that the general public has been saving during the pandemic, and therefore has much pent-up demand, is true but most of that household savings has gone into long-term deposits which cannot be immediately spent.

Of those two recovery options, a broad, strong recovery will have global implications through its impact on commodity prices. But even a narrow, shallow recovery will have an impact on global tourism as more people travel.

There is a surge in demand for travel coming. As people have been stranded at home for the past two years, many are now desperate to travel, both domestically and internationally, and forward indictors for all travel are now very strong.

I suspect we’re going to start to see what a post COVID world looks like for China in the second half of February. And it will be a period of time when economic activity picks up for China as economic activity in the West is slowing down.

South Asia

At the same time South Asia is continuing to recover and will benefit from the borders opening up with China as tourism into countries like Singapore, Thailand, Indonesia, and the Philippines, picks up.

Last year many Asian countries, especially in Southeast Asia, acted very independently of what was going on in China and independently of what was going on in developed markets. Many Asian countries actually had a good year when it came to economic growth and returns to equities, which is very unusual in a global downturn.

While there were pockets of strength in South Asia –especially in the smaller economies — now we’re moving into an environment where you have the biggest economy improving, along with smaller economies doing well.

We believe the majority of Asian countries will experience a better economic environment and improving corporate profitability in 2023, which will be good for equities.

Sectors to watch

Given our expectations for a slower recovery, we are looking at companies in the travel, entertainment and restaurant sectors in China, but are very targeted in our investments across all sectors as we do not believe all companies will benefit.

Gaming and tourism

Hong Kong and Macau are likely to be beneficiaries in the first wave of travel, so we like the Macau gaming space. The Macau casinos should do exceptionally well over the next couple of years.

In fact, in December one of the Man GLG Asia Opportunities Fund’s top contributors was Macau casino operator Sands China, which was buoyed by easing restrictions on both the mainland and in Macau. The stock has more than doubled in price since early October when it was granted the renewal of its casino licence.

Countries like Thailand should also benefit from an increase in Chinese tourism, so we have consumption and financials investments in those markets.

Healthcare

We like certain areas of healthcare in China post COVID, as many parts of the sector were deadlocked during COVID and are now in a much better position to grow.

Medical device production and general healthcare should start to improve. In terms of companies to look at, pharmaceutical stock Pharmaron was in the fund’s top five contributors in December as it rallied on growing demand for antipyretics and other anti-viral medication following the steep rise in COVID infections since the start of December.

Automation

Another area of focus in China is automation, which is an industry that has historically been growing above GDP but was heavily impacted by lockdowns. Not only did demand drop, but production capacity during COVID was impacted as well. A return to normal production in 2023 for automation should see corporate profitability improve across the sector.

Insurance

The other area we like is insurance, which has been through some extremely tough times. It should benefit from the restructuring in the sector over the last couple of years as well as the overall economic recovery which will improve the potential to sell insurance products to households.

In December, insurance groups AIA and Ping An were two of the top five contributors to the fund’s outperformance as they also continued their strong run on the back of improving financial conditions and support for the earnings outlook due to China’s reopening.

Looking forward

The next month will be crucial in understanding the economic fate of China, along with that of the rest of Asia, which leans so heavily on it. As the weather warms up in the weeks following Chinese New Year, we should start to get a good sense of whether this is the developed market post COVID model that we should be looking at – i.e. one where consumption booms as consumers use up COVID savings – or whether it’s a China-nuanced recovery.

If it is a broad recovery, then tourism dollars will be flowing around the world, investment will pick up, and that will in turn drive demand for commodities. If supply remains restricted, then it could also be inflationary for the rest of the world. That could cause problems as developed market central banks are still grappling with trying to use monetary policy to bring inflation under control.

Whatever the outcome, there are still good equity opportunities in China, and Asian countries that trade with China, for the astute investor.

By Andrew Swan, portfolio manager

———

GSFM Responsible Entity Services Limited 48 129 256 104 AFSL 321517 (GRES) is the responsible entity of the Man GLG Asia Opportunities Fund ARSN 658 645 026 (the Fund). The Fund is registered as a managed investment scheme under the Corporations Act 2001 (Cth). GRES has appointed GLG Partners LP (GLG LP) as the investment manager of the Fund. Class A Units in each Fund are available for issue by GRES, as responsible entity of the Fund. The information included in this update is provided for informational purposes only. The information contained in this update reflects, as of the date of publication, the current opinion of GLG LP and is subject to change without notice. Before making an investment decision in relation to the Fund, investors should consider the appropriateness of this information, having regard to their own objectives, financial situation and needs. Prospective investors should read and consider the product disclosure statement for the Fund dated 2 September 2022 which can be obtained from www.gsfm.com.au or by calling 1300 133 451. GSFM Responsible Entity Services has produced a Target Market Determination (TMD) in relation to the Fund. The TMD sets out the class of persons who comprise the target market for the Fund and is available at www.gsfm.com.auPast performance information given in this document is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. None of GRES, its related bodies or associates nor any other person guarantees the repayment of capital or the performance of the Fund or any particular returns from the Funds. No representation or warranty is made concerning the accuracy of any data contained in this document.

The post What an open China means for Asian equities appeared first on AdviserVoice.

John Maroney

SMSF Association CEO John Maroney says: “We do not and have never supported a cap on superannuation balances. The small number of SMSFs with extremely large balances are a legacy issue that the 2017 changes, which placed clear limits on contributions to superannuation funds and the amounts that can be held in the tax-free retirement phase, will remedy over time.

“It’s also our position that if there is a decision to restrict the retention of extremely large balances in superannuation, then needs to be handled carefully to ensure that any rule changes allow adequate time to manage the restructuring that would be involved, especially where large illiquid assets are involved. It also must not adversely affect the vast majority of SMSFs with moderate balances.

“We did suggest in 2020 that the Retirement Income Review examine the issue of extremely large balances, but deliberately did not recommend where that line should be drawn.”

Maroney notes the mooted change to impose a cap on superannuation balances conflicts with previous statements by the then Shadow Treasurer, Jim Chalmers, that “Labor will not introduce any new superannuation taxes or balance caps if it forms Government after the upcoming Federal election.”

“But if the Government has decided to have this conversation about balance caps, then it is one the Association and its members will actively participate in.

“In this vein we strongly support the announcement by the Assistant Treasurer, Stephen Jones, that Labor “will consult widely to inform a common, agreed objective for superannuation. Australians need to have their say. With an objective that is settled, we can talk sensibly about tax.”

“The Association has long supported the recommendation by the Financial System Inquiry to have an agreed common objective for superannuation, believing that if this foundation stone is put in place, then it will allow a far more productive conversation about the entire system, including balances.

“What must always be remembered is that constant changes to the superannuation tax settings erode confidence in the system and discourage members from making long-term savings plans.”

The post The SMSF Association remains resolutely opposed to a cap on superannuation balances appeared first on AdviserVoice.

“Customer-owned banks have enjoyed a productive working relationship with APRA. Both outgoing Chair Wayne Byres and incoming Chair John Lonsdale have driven a more proportional approach to regulation and a more facilitative approach to banking competition in APRA,” COBA CEO Michael Lawrence said.

“We welcome the appointment of John Lonsdale as APRA Chair.  Mr Lonsdale’s background as APRA Deputy Chair and a senior Treasury official, including as Financial System Inquiry head, provides an immeasurable understanding of financial sector issues, and we appreciate the time Mr Lonsdale has taken over the years to listen to customer-owned banks.”

“We also congratulate Therese McCarthy Hockey on her appointment as the APRA Member for banking. Ms McCarthy Hockey spoke at COBA’s annual convention last month, and it was clear from her valuable insights that she will apply her extensive banking and leadership expertise with great impact in her new role.”

“We also congratulate Ms Margaret Cole and Ms Suzanne Smith on their new roles.”

“Australia’s customer-owned banks look forward to continuing our productive relationship with APRA to ensure our sector can continue to grow and thrive to benefit more Australians.”

The post Customer Owned Banking Association welcomes new APRA appointments  appeared first on AdviserVoice.

Annette King

The Federal Government’s revised 2022-23 Budget, delivered tonight by Treasurer Jim Chalmers, contains fiscally responsible measures which are essential at a time when the nation’s growth trajectory confronts severe domestic and global challenges, the Actuaries Institute said.

The Institute believes the Budget acknowledges myriad challenges including rising prices due to inflation, an extremely large public debt burden and significant funding demands across the domestic economy including the NDIS, aged care, infrastructure, education and healthcare.

“Standout features we commend in this budget are the further strengthening of commitment to address climate change to improve resilience, support for greater access to housing, and setting the stage for the move to well-being budgets in future,” said Annette King, Actuaries Institute President.

“While possible reassessment of tax cuts has been deferred, overall, the Budget has a commitment to fairness and equity that are guiding principles for the Institute when we assess major public policy developments,” Ms King said. “It is especially pleasing to see the broadening of focus beyond economic and fiscal outcomes to also consider outcomes in housing, education, social programs, the environment, and health and disability.”

Amid forecasts of a nearing global recession, the Budget papers show that Australia’s economic performance remains impressive, with growth of 3¼% expected this financial year before slowing to 1½% next year. Unemployment remains low at 4½% through to 2023/24.

Treasurer Chalmers said government debt has risen sharply, with further pressure on the domestic economy due to high domestic and global interest rates. Inflation is expected to peak at 7¾% later this year and then gradually ease to 3½% through 2023-2024.

Referring to longer term structural issues, Actuaries Institute Chief Executive Elayne Grace, said: “The Government will need to tackle economic and social pressures arising from the ageing population, demands on the health, disability and education systems, and concerns about intergenerational wealth distribution including from superannuation and retirement benefits now available from the tax system.”

“The Institute strongly welcomes the Government’s increased statements of commitment to reducing greenhouse gas emissions and investment to help achieve that goal,” Ms Grace said. “In particular, the Institute commends the support for greater take up of electric vehicles, the Powering Australia Plan, and infrastructure around the Climate Change Authority, Safeguard Mechanism and Annual Climate Change Statement to Parliament.

“She said these Budget measures set Australia on a solid path to achieving its global commitments and help reduce the worst risks of a changing climate. “We know that vulnerable Australians are especially exposed to these risks through, for example, the most affordable housing being in the most climate exposed areas,” Ms Grace said.

“The frequency of extreme weather events and natural disasters across the country in recent years highlights the need for collaborative and urgent action to improve resilience.”

The Institute also welcomes the Government’s policies around housing, and in particular to further encourage downsizing through changes to the assets and income tests and super fund investment in affordable housing. Importantly, these measures will help address housing supply issues. The Institute notes because super funds must act in members’ best financial interests, it is a high bar for funds to invest in affordable housing. However, with the continued projected growth of the superannuation sector and economic role it plays as sophisticated investors, it is important to find win-win solutions to address Australia’s most pressing challenges. The Institute looks forward to seeing the policy details as they develop and strongly supports the foreshadowed consultation with industry stakeholders.

The post Labor’s first budget is fiscally responsible amid severe domestic and global challenges appeared first on AdviserVoice.

The FPA looks forward to engaging with the Minister on pressing issues impacting both the profession and the Australian public, in particular around certainty on education standards.

The FPA also looks forward working with the Hon Dr Jim Chalmers MP as Treasurer, especially regarding Treasury’s review of ASIC’s industry funding model.

FPA chief executive Sarah Abood said: “Minister Jones is an excellent appointment to the Financial Services portfolio and we are looking forward to working closely with him to address the wider range of issues affecting the financial planning profession.

“We are expecting the new Albanese Labor government to quickly deliver on its election commitment to provide much-needed certainty to the profession on education standards, including providing for a framework to better recognise relevant experience.

“We have already had good engagement with Minister Jones on this and other issues in the past and we look forward to working further with the new government.”

The post FPA welcomes appointment of Stephen Jones to financial services portfolio in an Albanese government appeared first on AdviserVoice.

John Maroney

The SMSF Association is looking forward to a constructive relationship with the incoming Labor Government and is hopeful that two of the outstanding measures from the 2021 Federal Budget – changes to residency rules and legacy pensions – will be legislated.

SMSF Association CEO John Maroney says: “We congratulate the Federal Treasurer, Jim Chalmers, and the Assistant Treasurer and Minister for Financial Services, Stephen Jones, on their appointments and look forward to working with them on issues relevant to the self-managed superannuation fund (SMSF) sector.

“Both Ministers paid us the courtesy of addressing our National Conference held in Adelaide in April, and we have extended an invitation for them to address our inaugural Technical Summit being held on the Gold Coast in July.

“In our experience they have always been willing to listen to the issues affecting the SMSF sector. We are confident they will appreciate the importance of these two measures and we seek their support to pass the legislation through Parliament.”

Reforms to the residency rules for SMSFs will see the existing two-year safe harbour exemption under the central management and control test extended to five years, while an amnesty period for SMSF members stuck in legacy pensions will give them the opportunity to convert to more contemporary style pension products.

Maroney says Stephen Jones had previously flagged that Labor would examine ways of giving financial advisers better access to client superannuation information from the MyGov ATO portal.

“We appreciate this initiative, knowing that it will benefit many of our members providing support to their clients.”

The post SMSF Association congratulates new Ministers appeared first on AdviserVoice.