CEO Sarah Abood said the lack of major changes relating to financial planners or clients is a small win and will allow them to continue helping clients and grow businesses.
“It is an opportunity for financial planners to catch their breath after years of change,” Ms Abood said.
“The Australian economy is performing much better than was predicted in the mid-year economic forecast, with strong employment figures and higher average wages.”
The FPA welcomed some of the initiatives announced in the budget, including tax offsets for small businesses and the support of a digital economy which Ms Abood said will be very useful for practices.
“Increased funding for the Consumer Data Right enquiry holds out hope that planners will have improved access to client data in the future, with potentially significant efficiency gains in advice preparation,” she said.
Meanwhile, the SMSF Association backed the government’s move to extend the temporary reduction in superannuation pension drawdown rates into the next financial year.
Originally announced in March 2020 as part of the government’s response to the pandemic, Treasurer Josh Frydenberg said the reduction would now remain in place until 30 June 2023.
“The temporary reduction in the minimum drawdown rates will help retirees manage the impact of volatility in financial markets,” SMSF Association CEO John Maroney said.
“The reduction is designed to reduce instances where retirees may have to sell some superannuation investments in a volatile or depressed investment market simply to satisfy the government’s minimum pension drawdown requirements, so, in the current geopolitical and COVID climates, extending the cut in drawdown rates is an important initiative that will help many retirees.”
“This budget includes stability of superannuation tax and contribution rules compared with the significant and important reforms to superannuation in last year’s budget,” he said.
“This simple fact that there were no wholesale changes to the superannuation system is gratifying for an industry that needs a period of stability.”
Similarly, the Financial Services Council (FSC) welcomed the reduction in superannuation pension drawdown rates, with CEO Blake Briggs calling it “important support” for Australian retirees.
“Superannuation consumers are facing a challenging economic environment and need certainty and stability in their superannuation savings,” he said.
“The FSC welcomes the Government’s commitment to make no adverse superannuation tax changes in the next term of Parliament.”
Read the biggest talking points from the pre-election budget here.
The biggest issue I have is the ability to find support staff. Gradually seeing my 2019 three person business shrink, to 2022 with one adviser and a part time receptionist and a hell of lot of offshoring, outsourcing, and tech stacking. I really love financial planning but the workload is now pushing me out. I’ve increased fees by 25%,to make the business profitable to attract staff but still no joy so I reduced client numbers. I have still plenty of inquiries. Full employment almost with 3.5% unemployment is killing a lot of businesses. We’ve left interest rates too low for too long.
How is it a win? Jane Hume has been promising to reduce red-tape for the last 12 months and all she has done is add more and more. This budget was a chance for Hume to honor her promise, but there was nothing, zero, zip!
What planet is the FPA on? Does Sarah Abood even talk to financial planners?
Giggity as a financial planner running a 5 AR business, I agree with Sarah. The stability after unprecedented change is a welcome one.
Announcing the tax deductibility of financial advise fees could have helped those needing financial advice to afford it – but this out-of-touch government couldnt think that far ahead…they can only think as far as the next election, clearly.
There’s not enough planners to cope with increased demand of financial advice as it is. The government wont want to add fuel to the demand fire just yet.