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The Financial Planning Association of Australia (FPA) has described this year’s Federal Budget as reasonably positive for financial planners.
“There are no major changes for financial planners or their clients, which means planners can continue to focus on helping their clients and growing their businesses,” says FPA CEO Sarah Abood.
“It is an opportunity for financial planners to catch their breath after years of change,” she says.
“The Australian economy is performing much better than was predicted in the Mid-Year Economic Forecast, with strong employment figures and higher average wages.”
The FPA has also welcomed a number of initiatives proposed in the 2022/23 Budget.
“The tax offsets for small businesses, supporting digital transformation and upskilling of staff, will be very useful for financial planning practices – many of which are small businesses themselves,” says Ms Abood.
“Increased funding for the Consumer Data Right enquiry holds out hope that planners will have improved access to client data in the future, with potentially significant efficiency gains in advice preparation.
“There is good news for retirees with the extension of lower minimum pension drawdown rates for another financial year.
“Many households will also benefit from the temporary reduction of the fuel excise.
“While some small changes were made, it would have been good to see further and bolder initiatives to support housing affordability and women’s economic security. These are vital to a stronger and more prosperous Australia, and a more resilient economy.
“The FPA will continue to work with government, regulators and policy makers on issues that will benefit financial planners and their clients. The ALRC Review and Quality of Advice Review will be key areas of focus for us this year.
“We also look forward to the Budget Reply from the Opposition later this week,” says Ms Abood.