Government fails to make headway in choice debate
Time is running out in the Federal government’s push to get choice of fund through Parliament in this sitting, though it remains confident of a deal with the Australian Democrats.
Time is running out in the Federal government’s push to get choice of fund through Parliament in this sitting, though it remains confident of a deal with the Australian Democrats.
Many observers are saying that, if the Bill is passed in this sitting, choice of fund may come into effect on January 1, 2000.
Recent reports have suggested the Government may be close to cutting a deal over the legislation with either the Australian Democrats or the Australian Labor Party (ALP). While the Government does not need the support of the ALP to push the Bill through the Senate, the Democrats’ support is crucial to this aim.
A spokesperson for Senator Kemp says recent comments by the Democrats show-ing a “shift” in their policy towards compromise are an encouraging sign.
“We are looking forward to discussions with the Democrats on choice of fund and feel confident that their demands can now be met,” the spokesperson says.
The Democrats’ spokesperson for superannuation Senator Lyn Allison, however, has played down the possibility of a deal being done, at least for the short term.
“The Democrats are always prepared to talk and our discussions so far have been positive but the Government’s current model of superannuation choice is not yet acceptable,” Senator Allison says.
The ALP has scotched any suggestion that a deal is being done from their end on choice of fund.
“Unless our alternative choice model is adopted, which includes investment choice and an opt-out clause for employees, we will absolutely not be making any deals,” a spokesperson at shadow treasurer Simon Crean’s office says.
Industry groups, meanwhile, have shown mixed responses to the latest develop-ments in Canberra.
Chief executive officer of the Association of Superannuation Funds of Australia (ASFA) Philippa Smith says it is too late to pass choice of fund this sitting.
“We’re no closer to an agreement than we were six months ago,” she says.
Deputy chief executive officer of the Investment & Financial Services Association (IFSA) Richard Gilbert is “heartened by the constructive debate”, saying IFSA has always supported “a responsible introduction of fund choice”.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
