Super funds should ‘keep pressuring’ Labor on QAR changes: Howarth

In a pre-recorded speech at the Association of Superannuation Funds of Australia (ASFA) conference, shadow financial services minister Luke Howarth once again highlighted the slow progress of the government in delivering advice reform on the back of the Quality of Advice Review (QAR), noting that it was now almost 700 days since Michelle Levy delivered her final report.

“Access to affordable financial advice is another key component of improving retirement outcomes,” Howarth said.

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“The Coalition launched the Quality of Advice Review to address the growing affordability and accessibility gap for financial advice in Australia.

“Sadly, the government has been slow to progress key reforms – including to improve accessibility of advice within super funds and intra-fund advice.”

The shadow minister has been keeping a rolling clock of the protracted timeline for the government to implement the QAR recommendations since July, when he told an FSC breakfast in Sydney that it had been 593 days since Stephen Jones was handed the Levy report and “not a lot has been done in that time”.

“It was well over 500 days [before] they put through the first tranche, and we know that there were difficulties there, and the industry, as well as the opposition, worked with them to try and get changes there,” Howarth said at the time.

“I don’t have a lot of confidence that they will get tranche two right.”

On Thursday, he urged the audience of super funds to “keep pressuring the government to deliver on implementing these reforms and cutting red tape to bring the cost of advice down”.

“Your industry is shifting, more members are reaching retirement age and will need advice on how to navigate it,” the shadow minister said.

“This demographic shift will be a challenge for future governments and your industry will be crucial to supporting them through it.”

Howarth added that the Coalition has no desire to “dismantle super”, despite what he called “scaremongering” from Labor.

“We are committed to the role of super in our retirement system,” he said.

“I believe in compulsory super and was lucky to understand the value of super at a young age – my father taught me to salary sacrifice and put away a bit of extra money.”

He also argued the importance of improving the understanding of younger Australians around superannuation and finance more broadly.

“A key priority for me, and my ask for all of you, is supporting financial literacy and improving engagement with super, particularly for young people as well as those entering the retirement phase,” Howarth said.

Last month, shadow treasurer Angus Taylor said that in order to create a strong retirement system, the government needs to look beyond superannuation and solve the “absolutely critical” advice challenge.

“The Coalition reiterates our commitment to fast-tracking implementation of the Levy review, in full, in government,” Taylor said.

“I can confirm that my colleague Luke Howarth and I have sought briefing from the government on the next tranche of the legislative response.

“And we call on the government to work with us and pass a bipartisan bill before the election.”