The next phase of financial advice reform

What the Government’s advice reform announcement means for super fund members 

In his National Press Club address in August, Assistant Treasurer and Minister for Financial Services Dr Daniel Mulino outlined a major package of reforms aimed at strengthening Australia’s financial system, improving consumer protections and expanding access to financial advice. A key focus of the announcement was ensuring Australia's superannuation system continues to support members as they navigate increasingly complex retirement decisions.

The reforms were announced following the collapse of the Shield and First Guardian investment schemes, which highlighted vulnerabilities across parts of the financial advice and investment ecosystem. In response, the Government has proposed measures to strengthen consumer safeguards while also making it easier for Australians to access guidance and support when making decisions about their retirement savings. 

Expanding access to affordable guidance

For superannuation funds and their members, the most significant aspect of the package is the Government’s renewed commitment to progressing the Delivering Better Financial Outcomes (DBFO) reforms. At a time when many Australians are approaching retirement with larger balances, more choices and greater complexity, the reforms are intended to address the growing gap between the need for advice and the availability of affordable support. TAL has been a strong supporter of this reform objective, as have superannuation funds and their industry associations. 

A centrepiece of the package is the proposed introduction of a New Class of Adviser (NCA). Subject to final design and legislation, this would allow super funds and life insurers to provide limited personal advice on their own products. The objective is to help more Australians access timely, low-cost guidance and support, particularly where full financial advice may be unaffordable or unnecessary. 

The reforms also support the use of targeted member communications and engagement initiatives designed to encourage Australians to consider important retirement, insurance and financial wellbeing decisions. For many members, this could mean greater access to support at key life stages, helping them better understand their options and make more informed choices. 

Strengthening member protections

Alongside measures to improve access to advice, the Government has proposed stronger protections against harmful superannuation switching lead generation and unsolicited selling practices. These reforms are intended to help ensure members can access assistance within a framework that remains focused on consumer protection and good outcomes.

While the timing of further consultation and detailed policy design is not yet clear, the reforms will take time to progress. As more detail becomes available, TAL will keep partner funds updated and work closely with them to understand and prepare for any resulting changes. For super funds and their partners, the reforms represent an opportunity to help more Australians build confidence in their financial future and make informed decisions about their retirement and insurance needs.

Speak to your Partnership Manager if you would like to discuss what these reforms could mean for your fund and members.