Jane Hume

The Financial Planning Association of Australia (FPA) welcomes the appointment of Senator Jane Hume as Assistant Minister for Superannuation, Financial Services and Financial Technology as a clear indication of a strategic focus on financial services in the re-elected Coalition Government.

The FPA looks forward to engaging with the Assistant Minister on priority issues impacting the profession and the Australian public, particularly raising the overall standards of education, ethics and accountability. Assistant Minister Hume has held senior positions in the financial services industry, working for the National Australia Bank, Rothschild Australia, Deutsche Bank and most recently as a senior policy adviser at Australian Super prior to her election as a Senator representing Victoria in 2016.

The FPA looks forward to continuing its work with the Hon Josh Frydenberg MP as Treasurer, and the Hon Michael Sukkar MP, who replaces Stuart Robert as Assistant Treasurer. The FPA also congratulates Mr Sukkar on his new portfolio as Minister for Housing.

Commenting on the appointments, FPA CEO, Dante De Gori CFP® said: “Assistant Minister Hume brings with her substantial experience in financial services and is an excellent choice for this portfolio as we seek to raise standards in the financial planning profession.

“We believe change must be done in a way that minimises impact on consumers while raising the overall standards of education, ethics and accountability for anyone aspiring to give professional financial advice to Australians.”

The FPA also congratulates Stuart Robert for his promotion from Assistant Treasurer to Minister for National Disability Insurance Scheme and Minister for Government Services.

“Minister Robert’s tenure as Assistant Treasurer was brief but highly effective in advancing higher education and ethical standards in financial planning. We wish him all the best with his new portfolio that has such significant social impact for so many Australians,” said Mr De Gori.

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John Maroney

The Federal Government’s decision to change the law to ensure that death benefits that include life insurance proceeds are not subject to tax when rolled over to a new superannuation fund has been welcomed by the SMSF Association.

Announced by the Assistant Treasurer Stuart Robert in his address to the Alliance for a Fairer Superannuation System in Sydney, SMSF Association CEO John Maroney says: “The decision to correct death benefit anomalies is extremely important to those people who have been forced to wait for an amendment before being able to adequately deal with death benefit sums.

“Individuals will now have the intended legislative flexibility to keep money in the superannuation system without adverse tax results.”

This announcement was one of several important technical superannuation changes announced by the Minister, which the Association has been strongly advocating in Canberra.

Maroney says: “The move to fix the way that market-linked pensions are valued under the Transfer Balance Cap (TBC) when they are commuted or rolled over, resulting in a nil debit, is another positive for the superannuation system.

“We support the intention to have a more permanent legislative solution to ensure the value of a commuted market-linked pension is correct.

“The 1 July 2017 super changes have caused significant distress for individuals with legacy pensions and this move is a step in the right direction to simplify the superannuation system.

“These are all changes the Association has been asking the Government to adopt, with the end result being better outcomes for many people in the super system.”

The Government also announced:

• Amending the law to maintain the treatment of market‑linked pensions under the TBC where they have been rolled over because of a successor fund transfer;
• Fixing the definition of life-expectancy period for innovative income streams to account for days in a leap year;
• Providing TBC credits and debits for innovative income stream products that are paid off in instalments; and
• Fixing the valuation of defined benefit pensions under the TBC to reflect when pensions are permanently reduced.

Maroney adds that the Government should further consider unresolved technical superannuation fixes recommended in the Association’s 2018-19 Budget submission, as well as the Death Benefit Superannuation Technical Amendment submission.

The Association will also make a submission to the Government with a focus on how to simplify the superannuation system.

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Stuart Robert

Super funds are battling to improve active member ratios while operating costs per member are rising across the sector, with long-term implications for the sustainability of smaller funds.

These are just some of the findings to be released today from the SuperRatings’ annual review of funds to a gathering of superannuation industry executives, fund managers and policy makers.

The SuperRatings annual Day of Confrontation brings together leaders in the sector to examine key trends and risks across superannuation and retirement. It includes the first major speech to the sector by newly appointed Assistant Treasurer Hon Stuart Robert MP and a panel on the future of financial advice that includes Senior Manager, Financial Advisers for ASIC, Ms Kate Metz.

Those discussions will be accompanied by a presentation by SuperRatings Executive Director Kirby Rappell on the findings from the ratings house’s annual review of fund performance and strategic risks and opportunities.

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Stuart Robert

The newly-appointed Assistant Treasurer, the Hon. Stuart Robert is confirmed to address the Association of Financial Advisers (AFA) National Adviser Conference (the AFA Conference) on the Gold Coast.

AFA Conference Chair, Michael Nowak, said the Assistant Treasurer will be delivering a main platform presentation on Friday 12 October 2018. This is the Assistant Treasurer’s first public opportunity to address financial advisers following the expected release of the Royal Commission Interim Report and the FASEA announcements on professional standards.

“The Assistant Treasurer’s attendance gives delegates the opportunity to hear directly from him on the Government’s plans for financial services,” Mr Nowak said. “It will also give the Assistant Treasurer the opportunity to get to know the AFA community and hear about the issues that are important to advisers.

“With all that is going on in the ever-changing world of advice, we encourage our members to take advantage of the Assistant Treasurer’s attendance at our Conference to discover what the Government has planned for financial services and how it is likely to impact them.”

Details on the conference program and registration.

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Association CEO John Maroney says the Association looks forward to working closely with these Ministers at a critical time for superannuation and the financial services industry more broadly.

“The FASEA reforms, the Financial Services Royal Commission and the Productivity Commission report will all generate critical issues for the industry and consumers, and the Association is keen to being involved in these discussions with all three Ministers.

“The Association has had previous dealings with Josh Frydenberg when he was Assistant Treasurer, and based on that experience we are confident he will listen closely to our views on the issues that are likely to emerge over the coming months.

“We would also like to update the Ministers on our opposition to Labor’s proposal to cancel cash refunds for excess dividend imputation credits, and why we believe it would be highly detrimental to those SMSF trustees and members who have worked hard to be self-sufficient in retirement.”

The Association also looks forward to working with Prime Minister Scott Morrison on key issues facing the superannuation and financial services sector. The Association has previously had a constructive working relationship with Mr Morrison as Treasurer, allowing for frank and robust discussion when he was responsible for reforming the superannuation tax concessions.

Maroney says the Association would like to put on the record its thanks to Kelly O’Dwyer, who worked closely and cooperatively with the Association in her role as Minister for Revenue and Financial Services.

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