‘We moved the reform dial significantly’, says Jones
Despite industry criticisms, Financial Services Minister Stephen Jones believes the Labor government has moved the financial advice reform dial forward “significantly” during his term.
Speaking at Momentum Media’s Election 2025 breakfast event in Sydney on 10 April, Jones reflected on his time as minister in one of his final public addresses.
Jones was sworn in to the role of Assistant Treasurer and Financial Services Minister on 1 June 2022, having been first elected to Federal Parliament in 2010. He announced in January this year that he would retire from politics and not contest the federal election.
“I think that we have moved the reform dial forward significantly. I can’t think of a time in my time in Parliament where we’ve had a more mature debate around the issues affecting this sector,” he described last week.
“We really do need to have a very clear-eyed focus on what we’re trying to do here. What we are trying to do here is to ensure that Australians have access to the information and advice that they need, when they need it, in a safe format.”
With one in five Australians set to be over the age of 65 by January 2026, Jones reiterated the significant need for advice plaguing the nation, particularly amid this current period of market volatility.
“[Advice is] important at any time, but incredibly important when we are going through a period of such economic uncertainty, when Australians are approaching retirement at numbers greater than we’ve ever seen in our nation’s history,” the minister explained.
“Try as we may, the number is about 5 million [retirees]. So 5 million into 16,000 [advisers] just does not add up. One answer might be to say, ‘Well, unless you can get in to see a professional financial adviser, you’re on your own’. In my view, that’s the wrong answer. We need to ensure that people have access to the information and advice which is relevant to them.”
When asked in a following Q&A session whether he believes he has fixed the “hot mess” characterising the advice sector, Jones replied “six more months” would have allowed for further progress on the Delivering Better Financial Outcomes reforms.
While the minister recently provided further information regarding the second tranche, including client advice records and superannuation funds charging for advice, the profession is yet to see full details on the modernisation of best interests duty and the new class of adviser.
“I’m a big fan of four-year electoral terms, I’ve got to say,” Jones said.
“I think six more months actually, we’d have had this particular project and a couple more completed. No government is likely to control the Senate in the next Parliament, but it’s absolutely the case that a four-year term, for lots of reasons, just makes sense in this country.
“I envisage that this project could have been completed in another six months and will be. I think we’ve moved the reform dial significantly.”
Jones encouraged the next financial services minister to recognise the importance of “deep engagement” with the sector, never assume they have all the details right, and have a clear understanding of what the overarching objectives are.
He continued: “I’ve stated pretty clearly what I think the objective needs to be, and that is the public interest. We got a big challenge here, the demographics are the challenge – we’ve got to meet it.”
Regarding the Compensation Scheme of Last Resort (CSLR) – which shadow financial services minister, Luke Howarth, said he ultimately wants to “get rid of” – Jones said the incoming minister will have a “brief on their desk” from day one in terms of reviewing the scheme.
He elaborated: “To be very clear, I don’t think we’ve got sustainable settings [for the CSLR]. We had arrangements put in place, it was bipartisan, everyone thought we understood what we were doing through it. It’s not unusual when you introduce a totally new mechanism in place, that you come back and review it, and that’s what I’ve initiated.
“I’ll refrain from giving unsolicited advice to my successor, but what I’ve done is ensure that they will have a brief on their desk on their day one to ensure they have a full understanding of where some of the problems are and some of the solutions.”
The initial CSLR levy estimate for FY26 is $77.9 million to fund an estimated 491 claims, and $70.1 million of this – some 89 per cent – is allocated to the financial advice sector. However, the Financial Advice Association Australia believes it could potentially rise to more than $100 million the following year.
In light of the spiralling costs, the federal government directed the Treasury in January to undertake a review of the CSLR to ensure it remains sustainable in the future.
AUTHOR
Jasmine Siljic
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