Free advice: Banks call for Govt rebate

By George Liondis

Consumers would receive a rebate to help pay for financial advice on superannuation under a proposal that has been put to the Federal Government by a key banking lobby group.

In a submission to a parliamentary inquiry into improving the super savings of people under 40, the Australian Bankers’ Association (ABA) said the Government should consider paying consumers a rebate to encourage them to seek advice from planners on their super savings.

The ABA said the rebate could also be extended to life insurance and other risk-related products.

“Disincentives for accessing financial advice should be removed through providing a rebate for those that seek professional financial advice in relation to superannuation and retirement income products,” the ABA’s submission says.

“This approach would acknowledge through public policy the enduring importance of the service of financial advice.”

The proposal was one of a number of moves suggested by the ABA to encourage younger people to save more for their retirement.

The ABA also called on the Government to improve incentives for individuals to make voluntary contributions, including extending access to the co-contributions scheme, and simplifying the super tax system by shifting all taxation of super savings to when people retire and receive their benefits.

ABA chief executive director Diane Tate said: “The Government currently allows a rebate for people in areas like health insurance. What we are a saying is that a rebate is recognition that financial services should have the same standing as health as an issue.”