The 2013-14 Budget was announced by Treasurer Wayne Swan on Tuesday night, and as the dust settles for another year, there are mixed feelings on just how financial services will be affected.
Wealth Professional sat down with Dante De Gori from the Financial Planning Association to find out what advisers need to know.
Video transcript below:
Stephanie Zillman, Wealth Professional TV
Stephanie Zillman: The 2013-14 budget was announced by Treasurer, Wayne Swan on Tuesday night and as the dust settles for another year, there are mixed feelings on just how financial services will be affected. Dante De Gori from the Financial Planning Association said some aspects of the budget will require action, while other elements may not come to fruition, pending the results of the
September Federal election.
Dante De Gori, GM(Policy & Standards), Financial Planning Association of Australia
Dante De Gori: I think it’s fair to say that most members will take most of the measures seriously for the ones that are due to commence sooner and those that are due to commence at a much later point in time, well the election will tell us whether they will proceed or not.
Stephanie Zillman: Given that many advisors are small business owners as well, De Gori said it was disappointing not to see more in the budget to relieve the stress of small business ownership.
Dante De Gori: So the government and the budget itself was very [light] on if indeed not representing any measures in respect to small businesses, primarily because the regulatory environment for financial planners, at the moment with FOFA reforms coming in, potential taxation services changes from 1st July as well. These have all added additional costs and layers of regulatory red tape for small businesses. Those costs have to be borne by businesses, by these small businesses with no further relief. Therefore again imposing some of the restrictions restrains access to advice because of the cost element.
Stephanie Zillman: For De Gori while the budget will result in limited material changes for advisors, the announcement of more funding for the Tax Practitioners Board prompts more questions than it answers.
Dante De Gori: However, there was an announcement made to give the Tax Practitioners Board more funding in respect to supporting financial advisors registering as tax agents. The funding was quite small, it was 1.4 million over 4 years and again it was only to set up an online registration. We would argue that that is way off in terms of the costs and funding needed in order to support the regulation of financial planners under a brand new regime, under a brand new regulator. that has not had experience on resources during the financial planners previously.
Stephanie Zillman: This is Stephanie Zillman reporting for Wealth Professional TV.