Concerns about the slow progress of financial services legislation has been a fixture of the Labor government’s term and Stephen Jones’ time as financial services minister.
Despite pre-election promises to fix the “hot mess”, advice reform has taken a backseat since the Albanese government took power in May 2022.
While Minister Jones was celebrating a win on Thursday with the passage of the Scams Prevention Framework, his opposite number took aim at the “devastating backdown” over the ban on the use of genetic test results in life insurance underwriting.
On Wednesday, the government launched a technical consultation on the measures, however, it is a far cry from the scenes five months earlier.
In September 2024, Minister Jones announced the total ban at a press conference surrounded by researchers and industry stakeholders, saying the change would “give Australians the confidence to undertake genetic testing without fear it will impact their ability to access financial security through life insurance”.
“I have met with countless people affected by this issue and thank them for sharing their stories and helping to drive this important change. The engagement from the community on this issue speaks to the importance of this announcement for so many Australians,” he said.
Yet, despite broad support from all corners – 97 per cent of the more than 1,000 submissions to the initial consultation were in favour of the ban – no legislation is even on the horizon.
In a joint statement with shadow minister for health and aged care Anne Ruston, shadow financial services minister Luke Howarth said it was yet another hollow promise from Labor.
“Under the status quo, people who could benefit from genetic testing are discouraged because of the risk of insurance discrimination. There is broad agreement and support for this ban on life insurers using genetic testing to refuse cover,” Howarth said.
“This is an egregious example of the Albanese government’s focus on announcements and grandstanding, rather than the follow-through. It has become clear this is not a priority for the Albanese government, with legislation nowhere to be seen on the eve of an election.”
Monash University’s Dr Jane Tiller, who, in September last year, had called the ban “outstanding news”, said the lack of progress is a “disappointing outcome for Australians”.
“With strong bipartisan support and no opposition, there is no reason why this legislation should not have been introduced to Parliament this term, as promised by the government,” Dr Tiller said.
“We are now calling on the government, and the opposition, to do right by Australians and commit to introducing this legislation as an immediate priority of the 48th Parliament.”
In comments to ifa earlier this week, Howarth had reiterated the lack of action on advice reform, saying that it is now “too late” for tranche two of the Delivering Better Financial Outcomes reforms to be legislated before the federal election is called.
“It took 12 months before the government even provided their final government response. Michelle Levy herself had to write a scathing op ed in the AFR calling for the government to get moving. I don’t think I’ve ever seen that before,” Howarth said.
“We want the recommendations intact but will also look at the work done since then and the feedback that has come from industry. Usually during implementation things will change along the way, that’s fine.
“I want the most impactful reforms enacted as quickly as possible, things like reforming statements of advice. The Coalition haven’t been obstructing this – the delays are all on Labor.”
Both parties are a disgrace and the Greens are much worse!!
They should include banning the use of Body Mass Index, it is not accurate.
It is taking a long time, because Treasury et al are trying to figure out how they can get away with two different playing fields.
One for “Qualified Advisers” and one for Professional Advisers.
Time will tell if I am wrong.