Coalition makes last minute literacy play

The Coalition has made a $21 million pledge towards improving financial literacy standards as both parties scramble for voter sentiment on the eve of the Federal Election.

Unveiled yesterday by Assistant Treasurer and Minister for Revenue Mal Brough, the Understanding Money platform will see $5 million poured into establishing a Consumer and Financial Literacy Foundation and a further $16 million spent over two years in a national information and education campaign.

“This commitment will provide basic and commonsense information and education to assist Australians - from young people purchasing a mobile phone though to superannuation and mortgages,” Brough says.

The Financial Planning Association(FPA) has given the strategy the thumbs up.

FPA chief executive Kerrie Kelly says the Federal Government’s literacy strategy is good for the financial planning industry.

“As more Australians understand about financial matters, the more they will recognise the valuable advice that financial planners give,” Kelly says.

Brough also pledged to work with State and Territory governments to incorporate financial literacy skills into schools, something the FPA’s Kelly has already been doing, and plans to continue.

Kelly was a member of the Consumer and Financial Literacy Task Force that made a number of recommendations to Government and have since been incorporated in the Coalition's strategy.

“I expect this work to increase in the coming year as I know our chair-elect, Kathryn Greiner hopes to make financial literacy one of the themes for the year,” she says.