Policy Update - June #2
Government responds to the Quality of Advice Review
The Government has issued its long-awaited response to the Quality of Advice Review. The Government has accepted 14 of the 22 Review recommendations for the overhaul of financial advice regulation.
The outcomes of this response can be broken down into three streams:
Stream 1 (Financial Advice) - This involves eliminating unnecessary regulations that add to the cost of advice without benefiting consumers. This includes streamlining the process of providing financial advice, such as simplifying consent and documentation requirements and removing the safe harbour steps from the best interests duty.
Stream 2 (Superannuation) - Efforts will be made to improve access to retirement income advice. This includes reviewing how superannuation trustees can charge fees for advice and expanding the scope of intra-fund advice, allowing superannuation funds to provide advice to their members.
Stream 3 (New models) - The government aims to explore alternative channels for delivering financial advice, including banks and insurers. This exploration will involve industry consultation to assess the feasibility and potential benefits of utilising these new channels.
The Government plans to introduce legislation to implement the outcomes of the response later this year. Further consultation will also be conducted on new channels for advice, including consideration of digital advice models.
Two new tax incentives legislated to boost SME digital and tech capacity
This week legislation passed to enact the Technology Investment Boost and the Skills and Training Boost tax incentives, previously announced in the Federal Budget:
Small and medium businesses with an annual turnover of less than $50 million will have access to a bonus 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia, until 30 June 2024.
Small and medium businesses will also have access to a bonus 20 per cent deduction that will support the uptake of digital technologies, until 30 June 2023.
Check out the ATO website to learn more.
Government flags upcoming consultation on an 'unfair trading' prohibition
In a speech last week, Minister Jones indicated the Government will commence consultation on a unfair trading prohibition next month.
He flagged several instances of what could be considered unfair trading practices in the digital economy, including:
tricking consumers into consenting to data collection;
omitting vital information to stop consumers making informed decisions; or
preying on vulnerable consumers using excessive tracking of data.
ACCC seeking feedback on CDR Data Holder Rectification Schedule
The ACCC has launched a survey to inform improvements to the Data Holder Rectification Schedule. The survey is an outcome of the ACCC's April findings paper on data quality.
The rectification schedule lists data holders who have self-reported implementation gaps in their consumer data sharing systems. The schedule includes information on known issues and the rectification dates proposed by data holders.
Open Data Roundtable - CDR Month
On Tuesday, FinTech Australia, FDATA, and the AIIA hosted an Open Data roundtable in Canberra as part of the CDR Month initiative.
The wide ranging discussion covered action initiation, regulatory frameworks, the global comparative context with representatives from Singapore and New Zealand and the big picture for digital economy policy and digital identity. The session also covered the centrality of use cases and life journeys. It was a sustained and useful discussion looking ahead to the future of CDR.
There was a combined audience of over 100 people both online and in-person with representatives from both industry and government. Thank you to all of our members who took part in this discussion.
