Quality of Advice Review: Final Government response released
The Government has issued its final response to the Quality of Advice review report. The Quality of Advice review report, prepared by Michelle Levy and released on 8 February 2023, included 22 recommendations aimed at making financial product advice more accessible and more affordable. An earlier response was issued by the Government in June 2023.
As a final response, the Government outlines a new model that will introduce a new class of financial advisers (termed “qualified advisers”) intended to expand the delivery of simple advice at scale that will be high quality, helpful, and safe for consumers. This class will be required to meet education standards, be focused on providing advice on simple matters, and be prevented from charging a fee or a commission.
The changes will be proposed to apply across all financial institutions, including superannuation funds, life and general insurers, and banks. It is expected that “qualified advisers” will generally be employees of licensed financial institutions. The licensee will be wholly responsible for the advice provided.
The Government is looking to develop legislation to be implemented in 2024. The proposed new model will:
- Modernise the best interests duty to ensure customers receive helpful advice, including on single issue or limited scope issues, at a high standard;
- Replace statements of advice with a record that is in plain English and provides helpful information to make an informed decision;
- Introduce a new class of financial advisers who can provide advice on simple topics, while being subject to the modernised best interests duty;
- Clarify the topics that superannuation funds can charge for advice on and allowing super funds to consider a broader range of a member’s personal and household circumstances such as debt, spouse’s income, or age pension eligibility;
- Allow super funds to provide helpful “nudges” to members to drive greater engagement with superannuation at key life stages.
Quarterly TBAR January Reminder
The Quarterly Transfer Balance Account Report (TBAR) for Self-Managed Super Funds (SMSFs) is due on 28 January 2024.
You are required to lodge your TBAR by this date if:
- A transfer Balance Account (TBA) event occurred in your member’s SMSF between 1 October and 31 December 2023.
You are not required to lodge if no TBA event occurred during this time frame. You may need to lodge a TBAR sooner where your member has exceed their personal Transfer Balance Cap.
The easiest way to lodge is online through Online services for business. Your tax agent can also lodge online through their online services.
Do you need to lodge your SAR by 28 February?
You may need to lodge your SMSF Annual Return (SAR) by 28 February 2024.
If you fail to lodge your return by the due date, Australian Taxation Office may consider further compliance action.
If your SMSF Annual Return is more than two weeks overdue and you haven’t contacted Australian Taxation Office, we will change the status of your SMSF to Regulation details removed. This means APRA funds can’t roll over member benefits and employers are discouraged from making any super guarantee contributions.
This status will remain until your overdue lodgments are brought up to date.
Remember, you’re still required to lodge if the fund has had no contributions, income payments made, or is in pension mode. If your SMSF does not have assets set aside for the benefit of members in the first year it was registered, you can ask the Australian Taxation office to cancel the fund or request a return not necessary.
