Phil Anderson

Phil Anderson, FAAA’s general manager, policy advocacy and standards, will be retiring on 27 November 2026 after over 30 years in the financial services industry, and much of the last twenty years dedicated to the financial advice profession.

Sarah Abood, chief executive officer of FAAA, thanked Phil Anderson for his dedication and service to the profession.

“Phil has made an outstanding contribution to the FAAA and to the financial advice profession that we serve. He has been absolutely tireless in shaping numerous important policy and standards outcomes, and building strong stakeholder relationships across government, media, and peak bodies as well as the broader profession.

“His leadership as CEO of the AFA was a key element in the successful merger of the AFA and FPA to create the FAAA. In his combined 13 years of service across both organisations, he has made a lasting positive impact for members.

“Phil has been a determined advocate for the financial advice profession for over 20 years, with senior roles in AMP, NAB, CFS, Netwealth and the AFA before the FAAA. In all that time he has consistently promoted the value of financial advice and has been a fierce supporter of financial advisers and planners and the important work they do for their clients.

“On behalf of the Board, Executive Team and staff, we thank Phil and wish him an extremely well-deserved relaxing time in retirement.”

Anderson said: “It has been a privilege to work alongside colleagues, members and stakeholders who are passionate about advancing the profession.

“Whilst we have faced a series of challenges along the way, from the FoFA reforms in 2011-12 through to the substantial announcements by the Minister last week, I am proud of what we have achieved together and look forward to following the FAAA’s ongoing success.

“Although I will be stepping back from full time work, I am intent on continuing to contribute to the advice profession and ensure that it continues to prosper.”

Anderson will retire at the conclusion of the FAAA Congress in November.

A recruitment process is underway for the role.

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Sarah Abood

In its submission^[1] to Treasury on Tranche 2 of the CGT and negative gearing legislation, the FAAA has pointed to a number of areas where the draft laws require further refinement.

The consultation covered the exposure draft legislation/instruments and explanatory materials for four exposure drafts – negative gearing exceptions (tranche 2), new residential dwellings, CGT adjustments (tranche 2), and the CGT apportioning method.

The FAAA’s recommendations include:

CGT and new residential dwellings

• Granny flats and secondary dwellings: The FAAA recommends that the Government allow new residential dwelling treatment for genuinely separate, income-producing secondary dwellings, even where not separately titled.
• Subdivisions: The FAAA recommends consideration of a threshold, above which the entire property would be treated as a new residential dwelling.
• Debt in mixed development scenarios: The FAAA recommends that the Government provide specific guidance, ideally with worked examples, on an acceptable methodology for apportioning debt and associated borrowing costs between a new residential dwelling and other dwellings on the same land where those dwellings are funded under a common or refinanced loan facility.
• Anti-avoidance rule: The FAAA recommends that the operation of subsection 5(10) be modified so that it only captures situations where the dominant purpose is to obtain a tax benefit.

CGT adjustments

• The FAAA notes that the detailed explanation of the new law spans a chain of gross-up and removal mechanisms, each requiring capital gains to be recalculated to strip out indexation or discount benefits obtained at a different level of a trust or AMIT structure before being re-applied at the level of an underlying individual member.
• It therefore asks the Government to commit to comprehensive ATO guidance, worked examples and calculation tools before this measure commences, and to consider a longer lead time before application, to allow the wealth management industry and the tax and advice professions to build the necessary systems and processes.

The FAAA also acknowledged that Government engaged constructively with the concerns raised in the FAAA’s June submission on the “widow’s tax” issue, and acted swiftly on them in this exposure draft and through the legislation passed last week.
———

Notes:
[1] https://faaa.au/wp-content/uploads/2026/08/20260821-FAAA-Submission-on-four-Tax-Papers-Package_Final.pdf

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Sarah Abood

Yesterday’s National Press Club address by Assistant Treasurer and Minister for Financial Services Daniel Mulino included welcome progress on the response to Shield and First Guardian, but further action is needed to enable more Australians to access advice, says Sarah Abood, CEO of the FAAA.

“We have seen the impact of disasters such as Shield and First Guardian on everyday Australians and we welcome the Government’s work to prevent such catastrophes happening again in the future.

“It is more critical than ever that Australians have access to comprehensive advice that is affordable and accessible, otherwise they will be more vulnerable to scams and fraud.

“While some of the reforms announced today by Minister Mulino will help achieve the stated aims, we are concerned that others may limit the ability of financial advisers to help Australians manage their finances and plan for their retirement,” Abood said.

Lead generation

“We welcome decisive action to crack down on unlicensed lead generation, however, we are concerned the proposed anti-hawking exemption changes could affect financial advisers’ ability to support clients and their families, particularly during critical life events.

“The Government’s further consultation on the anti-hawking changes must cover all reasonable contact between a financial adviser and clients and their families and other related parties, for example an external power of attorney. Professional to professional referrals and other genuine referrals must also be allowed.”

Superannuation and MISs

The FAAA supports the significant changes that will require superannuation fund trustees who are responsible for harm to fully compensate consumers at an earlier stage. This reduces compensation claims that flow through to the CSLR and ultimately fall on financial advisers.

“We encourage the Government to extend this approach to managed investments schemes as they have historically been at the centre of catastrophic collapses. The stronger governance requirements to be placed on MISs are critical to preventing future problems.”

CSLR

The FAAA is pleased the Minister has acknowledged the concerns it has continuously raised with him about the impact of ongoing levies on financial advisers, however at this stage he has not specified a figure for the 2026/27 special levy which is critical for members.

“We will continue to advocate to the government that financial advice should not pay more than $20 million in total CSLR levies and will work closely with the Minister to resolve this.”

The FAAA also welcomes the removal of the ‘but-for’ compensation model, however continues to call for AFCA being able to consider complaints about the management of a super fund or scheme ‘as a whole’ to improve the sustainability of the CSLR.

“Basing CSLR compensation on actual losses is a decision we’ve pushed for consistently, so we are pleased the Minister has heeded this.”

Delivering Better Financial Outcomes (DBFO) reforms

“Improving access to simple, affordable advice is essential to help Australians understand complex financial products and make informed decisions. As such, we are disappointed that the new class of adviser (NCA) will be limited to select large institutions. Consumers need choice in how they access this simpler, lower-cost form of advice. It should be an option for financial advice practices to allow them to help more Australians. The FAAA will hold the government to account on its commitment to ensure the NCA does not encroach on the type of work financial advisers do.

“We welcome the Minister’s scaled advice changes and ongoing commitment to prioritise reform of new financial adviser education standards.

“There are also a number of proposals from the consultation process that haven’t yet been addressed, including preventing phoenixing, however there are others that we welcome the Government not proceeding with such as delaying super switching and banning advice fees for switching super funds.

“We thank the Minister, his office and Treasury for their engagement,” Abood says.

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Sarah Abood

Sarah Abood, CEO of the Financial Advice Association Australia (FAAA), says Minister Mulino’s National Press Club address next week must put Australians’ access to affordable, trustworthy financial advice at the centre of the Government’s reform agenda.

With Australians facing rising living costs, a more complex tax system, and an increasingly difficult financial landscape to navigate, the FAAA says the Government must act on four issues that directly affect consumers’ ability to access trusted professional financial advice:

• Making the Compensation Scheme of Last Resort (CSLR) sustainable, so the costs do not continue to drive up the price of advice.
• Preventing future harm, particularly from predatory lead generation practices that can steer consumers towards inappropriate financial products.
• Enabling consumer choice and lower costs through the implementation of sensible Delivering Better Financial Outcomes (DBFO) reforms.
• Supporting the growth of the financial advice profession across all business models, ensuring consumers have choice about how they access advice.

Advice costs rising fast

“Financial advice has never been more important, but too many Australians simply cannot afford it,” Abood says.

“The median price of financial advice has shot up by 65% over the past five years, and is currently around $4,700. Every dollar added to the cost of providing advice makes it harder for consumers to access that advice.”

FAAA research shows that nine in ten advisers expect the CSLR levy to further increase the cost of advice, with the average practice facing a bill running into thousands of dollars per adviser, Abood says.

“Innocent financial advisers are currently paying these bills, and in many cases are forced to pass the costs on through higher advice fees. Consumers should not have to pay even more for professional financial advice because of failures by completely unrelated firms and in other parts of the financial services system.

“Wrongdoers should be pursued for compensation payments before innocent parties have to foot the bill, and AFCA’s rules and powers should be strengthened so complaints can be made against all parties that contributed to consumer detriment. Without these changes, consumers receive less compensation and protection, while the costs of the CSLR and financial advice continue to rise.”

Protection from aggressive sales tactics

The FAAA says the collapse of the Shield and First Guardian products show how devastating high-pressure sales tactics can be when unregulated lead generators funnel consumers, often via unsolicited calls, into products promising high returns.

“Around 12,000 Australians lost, in some cases, all their retirement savings after being targeted by sales processes that looked and felt like advice,” Abood says.

“Consumers need stronger protections against predatory lead generation, while still being able to find the right adviser for them.”

The FAAA says the DBFO reforms must deliver the simpler, more efficient advice system that was promised.

“Consumers should not be paying for unnecessary paperwork and regulatory complexity,” Abood says.

Growing the profession and supporting choice

The FAAA says the number of financial advisers has halved since 2019, while the demand for advice is skyrocketing as more Australians reach retirement age.

“We support the Government’s proposed education reforms and urge Government to bring these forward as soon as possible. Growing supply and ensuring there are a diverse range of advice practices will help lower costs for consumers, while also ensuring they have genuine choice in how and from whom the service is accessed.”

Abood says the Minister’s address is an opportunity to put consumers back at the heart of financial advice reform and prevent future harm.

“Australians need a financial advice system that is affordable, accessible and trustworthy,” Abood says.

“We are calling on the Minister to use next week’s address to commit to a sustainable CSLR, prevent future harm, shut down predatory lead generation practices, deliver sensible DBFO reforms and help grow the financial advice profession – reforms that will directly help more Australians access the quality financial advice they need.”

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Sarah Abood

The FAAA is concerned about the potential broader consequences of the Government’s plans for the minimum tax on discretionary trusts, seeking to “…highlight the potential significant implications of this proposal and long running unintended consequences that will likely emerge for many thousands of businesses in the future.”

In its submission to Treasury, the FAAA has made seven key recommendations:

• Consider better alternatives to a complete disallowance of tax credits for corporate beneficiaries. (For example, allowing corporate beneficiaries to benefit from tax credits in a similar way to other beneficiaries).
• Extend the exemptions available to farmers, to other businesses where intergenerational transfer of control is best facilitated via a discretionary trust.
• Extend the rollover relief transition period from three years to five years.
• Enable an exemption from the minimum tax to those entities that are in the process of restructuring during the transition period.
• Federal Government to coordinate with State Governments to provide stamp duty relief as part of the rollover relief arrangements.
• Greater flexibility to be provided in the rollover relief arrangements.
• Other alternatives to be considered to obtain the tax outcome policy objectives.

Read the full submission.

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Sarah Abood

The FAAA has unveiled the program for its flagship Congress 2026, bringing together leading voices in technology, financial advice, business leadership, and professional practice for three days of learning and collaboration.

To be held from 24 to 26 November at the Melbourne Convention and Exhibition Centre, the FAAA Congress will unpack the theme “Explore”, aiming to equip financial advisers with practical strategies, technical expertise and fresh thinking to help navigate an evolving advice profession.

FAAA CEO Sarah Abood said this year’s program had been built around the issues shaping the future of financial advice.

“Congress is where Australia’s advice profession comes together to explore what’s next. Whether it’s technology, regulation, business strategy or client engagement, every session has been designed to provide practical insights advisers can take back into their businesses.

“Our profession continues to evolve at pace. Congress gives advisers the opportunity to hear from industry leaders, challenge their thinking, learn from their peers and leave better equipped for the opportunities ahead.

“Just as importantly, Congress provides the chance to reconnect with colleagues from across Australia. Those conversations and shared experiences are one of the things that make this event so valuable each year”, said Abood.

The program features five keynote plenary sessions alongside specialist workshops and more than 20 technical breakout sessions across four learning streams – Develop, Strategise, Navigate and Expand – covering everything from regulation and compliance through to business growth, client relationships and practice innovation.

Key sessions include:

• Dr Jordan Nguyen, internationally recognised inventor and engineer, opening Congress with a keynote exploring how curiosity, innovation and emerging technologies are reshaping what’s possible
• The FAAA leadership team, including David Sharpe CFP, Michelle Veitch CFP, Sarah Abood, Phil Anderson and Andrea Forbes, providing delegates with an update on the evolving regulatory landscape and the future direction of the profession
• Four specialist workshops focused on sustainable business success, commercial realities for advice firms and collaborative idea sharing
• A closing keynote featuring trailblazing Melbourne Cup-winning jockey Michelle Payne, in conversation with Emmy Award-winning journalist Sara James, sharing lessons in resilience, leadership and achieving success against the odds. 

Congress will also feature extensive networking opportunities, technical workshops and CPD-accredited sessions, providing advisers with practical tools to strengthen their businesses and better serve clients.

On the final evening of Congress at the gala dinner, the FAAA will recognise and celebrate the best in financial advice with the FAAA Awards.

Early bird registrations are now open, with discounted pricing available until 30 September. FAAA members can register for $1,305 while non-members can attend for $2,695.

For more information and to register, visit the FAAA Congress 2026 – Financial Advice Association Australia

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Sarah Abood

The FAAA is particularly concerned by the significant increase in the ASIC Funding Levy for the 2025/56 financial year, up 27%. This, along with the recently announced CSLR special levy, will have a very significant cost impact on the financial advice profession.

Government levies could reach well over $5,000 per adviser this year. This is based upon $3,037 for the ASIC funding levy for 2025/26, plus the CSLR annual levy and an allocation for the FY27 CSLR special levy (totalling $170.3 million). We do not yet know how the special levy will be allocated. However, if the waterfall model proposed in the most recent CSLR consultation were to be used, advisers could pay an additional $20 million this financial year (on top of the $20 million base levy already paid). With just over 15,000 advisers currently, that would be another $1,300 per adviser this year – on top of the $1,312 each adviser has already paid for the sector cap.

This is a crippling cost imposed on a sector that is almost entirely made up of small businesses. It underscores the critical importance of the Government taking action to address the sustainability of the CSLR and to reduce these levies.

The most significant driver of this year’s 27% increase in the ASIC Funding Levy is higher enforcement costs. However, the information provided by ASIC has no meaningful explanation of the reasons for this increase or where the $24 million cost of enforcement was spent.

This increased ASIC Funding Levy is against a backdrop of record levels of fines awarded by the courts with respect to cases brought by ASIC – over $800 million. The FAAA continues to argue that the fines collected as a result of ASIC’s pursuit of wrongdoers should be used to offset the ASIC Funding Levy and the CSLR Levy. It is unreasonable for the financial advice profession to fund this enforcement activity, when all fines are paid straight to Consolidated Revenue for the benefit of the Government.

We repeat our previous calls for improved transparency from ASIC on how it allocates costs, and for Treasury’s recommendations for changes to the ASIC Industry Funding Model – handed down in June 2023 – to be implemented.

By Sarah Abood, CEO

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Sarah Abood

The FAAA welcomes the fact that the Federal Government’s proposed changes to CGT and negative gearing in the Budget did not impact superannuation. However it says an unintended consequence is that there is now a substantial tax incentive for Australians who want to invest in established residential property to do so via a Self Managed Super Fund (SMSF) which raises concerns that people will be convinced to do so via high pressure sales tactics without the benefit of financial advice, without a full understanding of the obligations that they are accepting as trustees of a super fund and without appreciating the risks involved with such strategies. 

In its submission on the inquiry on the Treasury Laws Amendment (Tax Reform No.1) Bill 2026 (attached), the FAAA make four recommendations to address these concerns. 

The FAAA will be presenting at the Senate Economics Legislation Committee public hearing today at 10.30am to further discuss the issues.

Read the submission.

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Sarah Abood

On Friday 22 May 2026, the FAAA provided the following three submissions to Treasury in response to the Government’s consultation on the CSLR and Shield and First Guardian:

• Compensation Scheme of Last Resort (CSLR): Reform options to support ongoing sustainability
• Enhancing member protections in the superannuation system
• 20260522-FAAA-Submission-on-Curbing-lead-generation-activity.pdf

We welcome consultation by the Government to address issues with the sustainability of the CSLR, and to fix any issues in the regulatory regime that contributed to the Shield and First Guardian collapses. We have welcomed a number of these proposals, including the removal of the ‘but-for’ test for CSLR payments and better enabling recoveries from corporate groups. We are also supportive of reforms to provide consumers with better protection in the context of predatory lead generation activity.

We have however called out a few key issues that any reforms need to address:

• As a small business sector, financial advice should not pay more than the $20m base annual CSLR levy.
• The AFCA Rules need to change to better allow consumers to make complaints about MISs and super funds, and to allow the apportionment of loss to other contributing entities.
• There is no basis for banning advice fees from super accounts for switching advice; this would be a huge problem for consumers as well as competition and costs in the superannuation sector.
• The current exemption from the anti-hawking laws for financial advisers is essential to enable them to contact their clients in time of need and should not be removed; we think the other measures proposed are more likely to be effective.

We will continue to work closely with the Government and other stakeholders as these reform proposals are assessed and progressed. This remains a high priority for the FAAA and we will keep members updated as this progresses.

If you have any questions with respect to these consultations or our submissions, then please contact the FAAA on policy@faaa.au.

Sarah Abood, FAAA Chief Executive Officer

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Sarah Abood

“The breadth of this Federal Budget, and the aims of Treasurer Jim Chalmers, are complex and wide-ranging, and its impact on Australians is likely to be substantial. There is no doubt that Australians who have access to quality, professional financial advice will be significantly better placed to navigate these changes than unadvised Australians.

“We welcome the exclusion of superannuation from CGT changes and the commitment to strengthen regulatory oversight and governance of Managed Investment Schemes, however, the multiplicity of changes to taxes, the NDIS, aged care and health insurance rebates will require careful analysis and planning.

“In particular, the changes to the capital gains tax (CGT) discount and inclusion of pre-1985 assets, limits on negative gearing, and the introduction of a minimum tax on discretionary trusts, will all impact long-standing financial plans and create additional complexity.

“Australians will need access to professional financial advice to navigate these changes. We are concerned that unadvised Australians will be more vulnerable to scams, fraud and unlicensed “finfluencers” as they seek to navigate the most wide-ranging reforms in over a decade.

“Our Pre-Budget submission outlined measures that will increase access to advice and improve affordability and we will closely examine Budget measures aimed at improving access to widely held ATO data.

“While we welcome the Government’s commitment to streamlining regulatory requirements including finance sector regulation, we encourage it to broaden its focus by reducing the red tape faced by financial advice businesses, which is a significant burden particularly for small business practices, and drives up the cost of advice for consumers.

“We urge the Government to act decisively and urgently to implement further changes to make it cheaper and easier to provide professional advice, which ultimately leaves Australians better off and more resilient.”

Sarah Abood, CEO

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