Budget 2022: What’s new for advisers?
The Budget was light on measures for advisers but two initiatives need to be on their radar when it comes to clients’ portfolios.
The industry had previously hoped for changes to the Compensation Scheme of Last Resort, the Australian Securities and Investments Commission (ASIC) levy and for superannuation to be paid on paid parental leave.
However, this did not mean there was nothing for advisers this year.
Grace Bacon, director of financial services at RSM Australia, said advisers would need to be across changes to the downsizer contribution and the increase to the income test threshold for the Commonwealth Seniors Health Care Card.
“It’s critical for financial advisers to remain proactive in reviewing their client situations. They will be able to talk to clients about ensuring they can take advantage of these new Budget measures, as they are measures clients may not previously have been eligible for or aware of.
“For example, the increase in the income threshold for the Commonwealth Senior Health Care Card has created opportunities for many older Australians to qualify for this benefit. This will help them combat the current rising cost of living pressures by reducing their cost of healthcare, utilities and transport. They may also be eligible for ad-hoc economic support payments.”
Regarding the unannounced measures, the Financial Planning Association of Australia said it would continue to engage with the Government on these issues.
Chief executive, Sarah Abood, said: “The FPA will continue to engage with the government in advance of the May 2023 federal budget on a number of issues that are important to our members, including broadening the base and managing the costs of its proposed Compensation Scheme of Last Resort (CSLR), extending the freeze on the ASIC levy for another year, broad tax deductibility of financial advice, and for the Australian Taxation Office and Centrelink to improve their online access arrangements to ensure financial planners are able to act on behalf of their clients.”
AUTHOR
Laura Dew
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
