The Financial Advice Association Australia (FAAA) has acknowledged there are a few announcements in the 2025 federal budget that will affect advisers, but is critical of the lack of any substantial measures for the industry.
Among the items the FAAA noted having a potential effect on advisers is a boost to the Tax Practitioners Board from 1 July 2025 aimed at improving compliance across the sector. The government has predicted this measure will deliver an additional $47 million in tax receipts.
New tax cuts were also recognised as having an impact on the financial advice sector. Here all taxpayers will receive a 1 per cent cut in the first tax bracket next financial year and an additional 1 per cent the following year. The 1 per cent translates to $268 for each individual.
Finally, advisers are likely to be impacted by the $207 million allocated to the Australian Securities and Investments Commission (ASIC) for it to update its business registers.
However, the industry body was extremely critical as to the lack of detail regarding crucial financial advice issues, such as the Delivering Better Financial Outcomes reforms, Compensation Scheme of Last Resort, annual ASIC funding levy and ATO portal access.
“The lack of detail in the budget follows the recent release (on Friday 21 March) of the next tranche of draft legislation for the Delivering Better Financial Outcomes reforms, which were also frustrating in their lack of scope and detail,” FAAA policy, advocacy and standards general manager Phil Anderson said.
“It is disappointing that the government has not been able to move ahead on a clear pathway in improving the accessibility and affordability of financial advice at a time when an increasing number of Australians would benefit from professional quality advice.”
As to the lack of detail regarding the wider financial services sector, the FAAA pointed out the budget papers only had two references to superannuation.
