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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Sarah Abood

A survey of members by the Financial Advice Association Australia (FAAA) shows the Compensation Scheme of Last Resort (CSLR) levy is set to significantly impact Australia’s financial advice landscape, with the majority of respondents saying it will push up costs for consumers and accelerate adviser exits.

The findings show that nine out of ten advisers expect the levy to increase the cost of financial advice, as firms move to pass on the impact of a potential $4,000 per adviser bill. In addition, 70 per cent of advisers believe the CSLR levy will result in a reduction in adviser numbers.

Advisers are calling for the government to make significant changes to the CSLR scheme including:

• 79 per cent want the cost of any special levy spread across the financial services sector on a more even basis
• 63 per cent want to cap the total amount paid by the advice sector, and
• 74 per cent are calling to change AFCA rules to better allow investors to make complaints against the management of MISs and superfunds as a whole.

FAAA CEO, Sarah Abood, said the findings highlight a growing disconnect between the intent of the CSLR and its real-world impact.

“The clear message from advisers is that the CSLR levy will be felt not just by advisers but also by consumers – through higher advice costs and reduced access to advice.

“The financial advice profession is made up primarily of small and micro businesses, with just over 15,100 advisers spread across 6,073 practices – an average of only 2.5 advisers per practice. These small businesses have little ability to absorb large additional costs.

“We are already seeing signs that the levy is affecting both retention of existing advisers, and the pipeline of new advisers. A continually shrinking profession will have long-term negative consequences for access and affordability of advice for everyday Australians.”

Highlighting a growing risk to the sustainability of the profession, nearly seven in ten advisers (69 per cent) expect a material hit to profitability, with 32 per cent forecasting a major impact of more than 10 per cent.

To offset the cost, 79 per cent of advisers say they will be forced to increase client fees.  Others are considering scaling back investment in people, with 36 per cent planning to reduce new adviser appointments.

Further, almost half (44 per cent) report knowing colleagues who are planning to leave the profession as a result of the impact of CSLR, and 9 per cent say they intend to exit themselves, raising concerns about access to affordable financial advice at a time when demand is rising.

“There is strong support amongst advisers for a more balanced and sustainable funding model. Financial advisers should not be bearing a disproportionate share of the cost for failures that occur elsewhere in the system when products collapse, and they should not be paying for the misconduct of a tiny minority of advice businesses that have done the wrong thing,” Abood says.

“We support the principle of compensation for consumers, but the scheme must be fair, sustainable and not undermine the ongoing viability of the advice profession.”

———-

The FAAA Member 2026 Survey: Impact of the Compensation Scheme of Last Resort (CSLR) Levy was undertaken in March 2026 and open to all FAAA members.  Its purpose was to understand the impact of the CSLR levy (ongoing and special levy) on professional financial advisers.

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Louise Biti

The Federal Government’s Independent Review of Residential Aged Care Accommodation Pricing^[1] has endorsed the need for clearer boundaries between information and financial advice, with a recommendation that financial advice on aged care be limited to licensed advisers holding an aged care specialist designation.

It reinforces the findings of the recent white paper by Aged Care Steps^[2] on the regulation of aged care financial advice and supports the Financial Advice Association Australia’s (FAAA) aged care specialist designation.

Sarah Abood, CEO of the FAAA, said: “The recommendations would lead to a clearer, safer pathway for older Australians, enabling these people to make more effective aged care decisions. This is particularly critical as Australia’s population ages – the proportion of people aged over 85 is one of the country’s fastest growing demographics.”

The review highlights the challenges older people face in understanding the costs and financial impact of residential aged care accommodation, often leading to aged care providers and other unlicensed players being asked for information and guidance bordering on, and sometimes crossing into, personal financial advice.

It recognises that aged care providers, Aged Care Specialist Officers (ACSOs) and Financial Information Service (FIS) officers are limited to the provision of information, not financial advice. It also states that aged care providers must ensure their staff do not provide financial advice and that any information about aged care costs remains accurate and factual.

Louise Biti, director at Aged Care Steps, said that the report validates long-standing concerns about the risks created when aged care staff attempt to guide families through complex financial decisions.

“This report reinforces what our White Paper made clear – aged care financial advice must be delivered by registered financial advisers with specialist training. Aged care providers and FIS officers play an important role in providing information, but they need clear boundaries and safeguards to ensure they don’t inadvertently step into financial advice,” Biti says.

The Review also proposes a requirement for advisers to complete and maintain specialist training and qualifications to provide aged care financial advice. The Review specifically recognises the FAAA’s Aged Care Specialist designation, with education delivered through the Aged Care Steps Accredited Aged Care Professional program, and it calls on the Department of Health, Disability and Ageing to work with the FAAA to ensure advisers have access to accurate, up-to-date training.

Abood says: “We welcome the Review’s recognition of the FAAA Aged Care Specialist designation, with education provided by Aged Care Steps, and the call for a stronger focus on specialisations. This is essential to protecting older Australians and ensuring they receive high-quality financial advice on aged care. We would welcome the opportunity to work with the Department and Government to ensure aged care specialist designations are recognised appropriately in financial advice licensing requirements.”

Anyone seeking specialist aged care advice can use the FAAA Find a Planner service at https://faaa.au/find-a-planner/ and search for a licensed adviser who holds the Aged Care Specialist designation.

———

Notes:
[1] https://www.health.gov.au/resources/publications/independent-review-of-residential-aged-care-accommodation-pricing?language=en
[2] The Risk of Unregulated Aged Care Advice: Protecting Older Australians and Ensuring Quality Advice, Aged Care Steps Pty Ltd, January 2026

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Sarah Abood

The FAAA welcomes yesterday’s release of three consultation papers on consumer protection and the Compensation Scheme of Last Resort (CSLR) by Minister Mulino.

Sarah Abood, CEO of the FAAA, says: “Preventing future collapses and improving the sustainability and fairness of the CSLR are critical issues for financial advisers, victims of misconduct. and consumers more broadly. We will carefully review the Government’s proposals in coming weeks and we will be engaging with our members on our responses.

“In the current system, a declining number of financial advisers are paying the largest share of the CSLR levy despite having nothing to do with the misconduct that gave rise to the need for consumer compensation.

“Bi-partisan support for proportionate, effective reforms that help victims, prevent misconduct and hold those responsible accountable, is crucial for investor confidence and market efficiency. We will work constructively across the Parliament to help ensure this is the case.”

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David Sharpe

In the three years since the Association of Financial Advisers (AFA) and the Financial Planning Association of Australia (FPA) merged to become the Financial Advice Association Australia (FAAA), the FAAA has become the unified voice speaking for professional advisers in Australia, says FAAA Chair David Sharpe.

“This Friday (3 April 2026) marks the three-year anniversary of the FAAA, formed with the overwhelming support and votes of members of both heritage organisations. Together, we now have 10,799 members, and the future of the profession is bright,” Sharpe says.

“What  I am most proud of is that the FAAA saw the coming together at the board, management and most importantly at the member level like we had always been one.

“The FAAA very quickly formed its own identity with members. Our communities have come together and created grassroots events and connections for members right across the country.

“The release of the 2030 Strategic vision and the Policy Platform at Congress 2024 consolidated what the FAAA stands for and what it hopes to achieve.

“With considerable challenges such as CSLR and confusion over AML – the benefit of a professional voice speaking for our members has never been more important,” Sharpe says.

Some key milestones for the FAAA since the merger include:

• The launch of the Advice Academy in November 2025 to help build and support a pipeline of new advisers entering the financial advice profession
• The announcement by the ATO in September 2024, after consistent lobbying from the FAAA, that greater deductions for upfront financial advice fees are now available
• The launch of the Advice Ambassadors program in February 2025, aiming to pair each member of parliament with a financial adviser in their electorate, ensuring their awareness of our issues and the value we add to local communities.
• The signing of a memorandum of understanding in November 2024 with FPSB India, a subsidiary of the Financial Planning Standards Board (FPSB), and the FAAA, to promote cross-border mobility and professional development for CERTIFIED FINANCIAL PLANNER (CFP) aspirants and professionals.
• The November 2024 launch of a major consumer digital marketing campaign, promoting professional financial advice to consumers and explaining the value of obtaining advice from a member of the FAAA
• The September 2024 launch of an upgraded Find a Planner tool to help members connect with their ideal potential clients and grow their businesses
• The launch of the FAAA careers centre in June 2024 which features advice related roles at all stages, and which is actively promoted to student members and graduate members seeking employment in advisory firms.

Marisa Broome, FPA chair from October 2018 until May 2022, said the goal was to present a strong unified voice to stakeholders, and this has been achieved.

“It was very evident to then FPA CEO Dante de Gori, and me, that when the AFA and FPA joined together to meet with our politicians and regulators, we had a far greater impact,” Broome says.

“The AFA and the FPA were more similar than different – and in fact shared well over 1,000 members.  It made sense to join resources and be able to represent the majority of the professional financial advice sector.

“It was fortunate that our work with previous AFA presidents had built a lot of trust.  The openminded approach of then AFA president Sam Perera, and the trust we continued to build, provided the opportunity for the merger to be presented to the AFA and FPA boards.”

Sam Perera, AFA president from October 2021 until the time of the merger, said the AFA pursued the merger to ensure the success and longevity of the 77-year-old Association against the backdrop of a profession that desperately needed a strong, unified voice.

“We were convinced that coming together as the FAAA would enable us to be better resourced, more sophisticated, and a respected voice for the profession,” Perera says.

“It is clear that the FAAA has indeed risen to be the legitimate voice for the profession, advocating relentlessly for policy settings that enable financial advisers and their practices to thrive.

“Another important measure of success was our Association’s ability to keep members at the heart of everything it pursues. To that end, I congratulate David Sharpe, the FAAA Board and FAAA CEO Sarah Abood for their tireless work in translating the vision we had in 2023 into a reality.”

Sharpe also paid tribute to board members who recently stepped off the transitional FAAA board: Patricia Garcia and Katherine Hayes.

“The creation of the transitional FAAA board following the merger, comprising eight directors from the FPA and four from the AFA, and tasked with overseeing the transition and guiding the new association for three years, was extremely successful. I thank Patricia and Katherine for their service to the profession and their activity on the board over the past three years.”

FAAA CEO, Sarah Abood says the one constant for the financial advice profession is legislative change.

“The overwhelming vote to merge the two associations was a strong endorsement, with almost 97 per cent of members who voted, across both heritage associations, having voted to come together. It was a clear message that financial advisers wanted a unified membership body to represent them, support them and to navigate the ongoing legislative and regulatory change that faces the profession.

“While the FAAA has achieved much over the past three years, there is still work to be done and the policy and advocacy team’s work is continuing apace.”

“We are proud to represent professional financial advisers and the great work our members do every day, helping Australians become better off financially and achieve their goals and dreams.”

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Ian Fryer

Chant West and the Financial Advice Association Australia (FAAA) have jointly launched a framework to make it easier for financial advisers to work with superannuation funds to support their shared clients and fund members.

Called the Adviser-Ready Fund, it will help ensure that more Australians have choice about how they access financial advice, and that financial advisers can access the information they need to support their clients throughout their super saving and retirement journeys.

Chant West general manager, Ian Fryer, says that with input from FAAA members, the purpose-built framework includes tailored underlying criteria to assess the services and information that super funds provide to financial advisers to help them support clients who are fund members.

“Chant West and the FAAA share a commitment to creating a stronger alignment between the work of the super and advice sectors to ultimately create better financial outcomes for more Australians.

“It is critical that more Australian consumers have access to great financial advice. The Adviser-Ready Fund accreditation will help ensure that more consumers have choice about how they access advice, and that advisers can find the information they need to support their clients.”

FAAA CEO, Sarah Abood, says quality, professional financial advice is at the heart of helping Australians enjoy an economically secure retirement, and the Adviser-Ready Fund accreditation will assist advisers who are working on behalf of their clients to achieve this.

“A panel of FAAA members who use all types of superannuation products – including SMSFs, platforms, and pooled vehicles such as retail and ‘profit to member’ super funds – were involved in developing the key assessment criteria. This helps ensure that the criteria are focused on what advisers actually need to assist their clients,” Abood says.

“It is important to note the Adviser-Ready Fund is not an investment rating. It is an assessment of how effectively a super fund is supporting external financial advisers who need to access information and implement advice on behalf of their clients.”

The key criteria include:

• access to client’s super fund holding information (via an adviser portal)
• ability to transact on behalf of clients, including digital signatures and consents
• ability to deduct advice fees
• key product features that support the delivery of tailored advice in relation to super
• ease of advisers arranging fee deductions and third-party authorities, and
• third-party adviser support through dedicated contact centres.

“There are 24 criteria that funds are assessed against, and they need to meet 16 out of the 24 criteria to receive the Adviser-Ready Fund certification,” Fryer says.

The funds that have achieved a certification for 2026, indicating they are operationally ready to support external professional financial advice, are:

• AMP MyNorth
• Australian Retirement Trust – Super Savings
• Aware Super
• Brighter Super
• BT Panorama
• CFS Edge
• CFS FirstChoice
• Expand
• HUB24
• Macquarie
• MLC MasterKey
• Netwealth

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Kevin Hogan

The FAAA congratulates Hon Kevin Hogan MP, the Federal member for Page in Northern NSW, on his appointment as shadow assistant treasurer and minister for financial services.

Sarah Abood, CEO of the FAAA, says Mr Hogan’s professional background in financial services will give him insight into Australians’ financial advice needs as well as those of the financial advice community.

“Our priority is to ensure bi-partisan support for key priorities such as growing the financial advice profession, fixing the Compensation Scheme of Last Resort, and improving the accessibility and affordability of advice.

“We look forward to engaging with Mr Hogan as we continue to work towards a stronger and more sustainable financial advice framework, ensuring more Australians are able to achieve financial wellbeing.

“In Mr Hogan’s electorate of Page, FAAA members support over 3,000 clients.  The region also has an ageing population, so we know that issues around retirement and financial security are front of mind.

“We also thank outgoing shadow minister Pat Conaghan and his staff for their engagement and interest in the issues affecting our profession,” Abood says. “Pat’s real understanding of a complex portfolio and commitment to engaging with the wide range of stakeholders in financial services ensured he worked effectively across the Parliament to progress reform.”

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