Ms O’Dwyer will replace former small business minister Bruce Billson and former assistant treasurer Josh Frydenberg.
Following the announcement, AIOFP chief executive Peter Johnston said the appointment was “great news” for the industry.
“This should be a game changer with our ‘Battle for Fairness’ campaign,” Mr Johnston wrote in an email to his members.
“With Kelly having both portfolios she will more than likely have a sympathetic ear for small business operators, and not coming from an institutional background will tilt the ‘fairness barometer’ in favour of consumers and advisers,” he said.
Along with Ms O’Dwyer’s appointment, Prime Minister Malcolm Turnbull named Scott Morrison as the new Treasurer.
Commenting on the new cabinet appointments, FSC acting chief executive Andrew Bragg said the council expects the new Treasury team “will hit the ground running during this term to complete the reform agenda established by their predecessors”.
“Life insurance reform is overdue. The sustainability reform proposals have taken five years to develop and must swiftly progress,” he said.
Last week, federal Liberal MP Bert van Manen told ifa sister publication Risk Adviser that the time was ripe for the industry to ”apply pressure” for changes to be made to the insurance reforms.
Speaking to Risk Adviser, Mr van Manen – a former financial adviser – said the industry reforms were “not set in stone” since they present many difficulties for advisers, especially small business owners.
“This is the time for feedback and for the industry to apply pressure,” Mr van Manen said.
Meanwhile, Ms O’Dwyer will have a wide-ranging remit including superannuation and tax.
“The Assistant Treasurer is in effect the minister for revenue and is responsible for the tax system, which is at the very centre of our whole productivity agenda, indeed at the very centre of the small business agenda,” Prime Minister Malcolm Turnbull said on Sunday.
Also commenting on Ms O’Dwyer’s appointments, AFA national president Deborah Kent said the association was looking forward to the opportunity to consult with the new minister.
“Ms O’Dwyer will have significant decisions to make in the government’s response to the Financial System Inquiry, the area of professional standards for financial advice, and also in regard to the future of life insurance advice,” Ms Kent said.
“These issues have significant implications for the future of self-employed advisers and small business financial advice practices – two groups that ensure appropriate competition in financial services,” she said.
Prior to Ms O’Dwyer’s election to parliament for the seat of Higgins in December 2009, she worked as an economic policy adviser to the federal treasurer and held an executive position with NAB.
Is there any way we can stop the AFA and FPA from “negotiating” with the new ministers on our behalf? Given that they seemed to have no idea what their members would actually accept the last time, we could end up with level commissions AND a five year clawback period.
Also, could someone remind all parties that negotiation means BOTH parties have to forego something they want – not just one side.
Ex nab executive? And made her the minister for small business? If I was cynical I would say this shuts bilsen up and let’s a banker run the show. It could give small business even less of a voice!
I’m hopeful the govt will change it’s way but at the same time realistic that the FSC seems to get what it wants so easily regardless of consequences to small business.
After all my life I don’t think I will ever vote liberal again if this frydenberg scandal doesn’t get cleaned up. Small business advisers are traditionally all liberal supporters and are angry at what tried to be bullied through. It is a blatant profit grab frydenberg manipulating negotiations (threat of level commissions only) to favor big business at the expense of small business.
I only hope Scott Morrison sympthatises with the cries of the small business risk only adviser to make me change my mind.
Otherwise next time labor gets in there will be lots of out of work financial advisers lining up at the royal commission to point fingers at the links between the major banks and the liberal party politicians.
Looks like Josh has been banished to the Northern Territory. Hopefully the FSC lobbyist on his staff is now gone too, and the new minister reconsiders the foolishness of killing off insurance advice.
How surprising the FSC want this matter to “swiftly progress” as soon as possible.
I am surprised the term “sustainability reform proposals” was not mistakenly referred to as “profitability reform proposals”.
Manipulation of markets and distribution which greatly impact the viability and future of small business disguised as sustainability issues is very transparent.
No compulsory requirements to lower insurance premiums, no compulsory arrangements to comprehensively manage clawback issues and no compulsory requirement to ensure identifiable consumer benefit or advantage speaks volumes of what this process has really been about.
I have no doubt that Kelly O’Dwyer will now see an important opportunity to manage this process correctly and fairly and not be pressured into accepting that the cries of doubtful sustainability risk to banks and insurance companies is an absolute priority over the viability and survival of small business and the consumer and community benefits they provide.
This combination of ministerial functions recognises small business, and not the banks, are the engine of financial services. Smart move from a PM that understands the industry. Good luck Ms O’Dwyer