It’s election eve. Brace for disappointment | Australian Markets

It is usually folly to foretell the end result of Saturday’s federal election and so I cannot, however I’ll predict that irrespective of which get together wins Government financial advisers must work exhausting to be heard and to extract acceptable change.

The backside line for the financial planning group is that each one the issues they’ve been dealing with in phrases of the fee of the Compensation Scheme of Last Resort (CSLR) and reshaping the sector through the DBFO laws won’t be solved by a new minister or a change of Government.

The torpid method exhibited by the outgoing Assistant Treasurer and Minister for Financial Services, Stephen Jones, mixed with the timing of the election has kicked the can nicely down the highway making certain that change, if it does occur, won’t turn out to be a actuality till 2026.

Because of the election timing, the Senate Economics References Committee review of the Dixon Advisory collapse and the workings of the CSLR had been put on maintain, whereas it additionally meant that the publicity draft of the second tranche of the DBFO laws stays within the stakeholder suggestions and dialogue stage.

Getting the wheels of Government shifting after a Federal Election is much like making an attempt to begin a dodgy Holden on a winter’s morning in Canberra – even should you get the bloody factor began, you’ve nonetheless acquired to get the frost off the windscreen.

And for whoever is appointed to be the following Minister for Financial Services, there may be an terrible lot of Treasury-generated frost on the windscreen that means that the main financial companies foyer teams will need to be lobbying exhausting to make sure the new minister will get more than simply the Treasury briefing line.

What has been attention-grabbing in regards to the Federal Election marketing campaign is that whereas the Opposition has been vocal through its front-bench spokesman, Luke Howarth, in giving assurances about righting the legislative wrongs in financial planning, the Government has lacked a ministerial voice and remained largely silent.

Common sense subsequently means that a re-elected Albanese Labor Government won’t veer a lot from the trail it has set on DBFO and the CSLR – a path largely mapped by Treasury.

A change of Government will seemingly see Luke Howarth’s more sympathetic method canvassed with the Treasury advisers and legislative draftsmen, however no one ought to overlook how sympathetic Stephen Jones sounded earlier than taking maintain of the portfolio.

So if financial advisers have discovered something over the previous twenty years and a number of financial companies minister it’s that pre-election guarantees are simply made and simply as simply evaporate within the heat of Government.

A superb place to begin for whoever is the new minister can be to pay attention as a lot to industry stakeholders as to Treasury.