Jones stumped on rising costs of financial advice in budget.

Under questioning in Parliament today it was revealed that the Minister for Financial Services, Stephen Jones is asleep at the wheel when it comes to the Budget’s impact on the cost of financial advice.

Mr Howarth took the opportunity today in Parliament to ask questions to his opposing counterpart.

Shockingly, Minister Jones had no answers.

Minister Jones must come clean on the impact of the Budget on financial advisers and answer these questions:

1. “The Budget includes several measures that will require additional ASIC levies on page 71, 179, 181 and 184 of Budget Paper 2. How much of these additional ASIC levies will be paid for by financial advisors?”

2. “On page 180 of Budget Paper 1, GST receipts in 2023-24 were upgraded from the MYEFO estimate of $84,079m to $85,758m. Does this upgrade include increased receipts due to the ATO’s revised interpretation on eligibility for trustees to claim the reduced input tax credit for GST on fees paid for financial advice?”

3. “We’ve estimated that GST receipts have increased by $250 million because of the ATO’s new interpretation. Does that account with your estimate?”

4. “Does this situation accord with the Government’s stated aim of reducing the cost of financial advice and increasing accessibility for Australians?”

“Australians deserve better than a Government that promises to reduce the cost of financial advice but has in practice has presided over a hot mess of a Budget that is pushing up the cost of financial advice.” Mr Howarth said.

Mr Howarth takes his Shadow Ministry portfolio very seriously. Mr Howarth meets with handfuls of industry professionals each and every week, attending roadshows, seminars, and events to engage and connect firsthand with our financial advisors.

Amidst the complexities of today’s financial circumstances, the role of trusted financial advisors stands as an indispensable beacon of guidance and expertise.

Mr Howarth hears the cries for help from financial advisors and industry professionals and the Coalition will be the answer and support for financial advisors.

This is driven by the fact that people in Australia are currently experiencing a cost of living crisis, and affordable financial advice is needed urgently.

Adding additional costs to financial advisors won’t help ordinary Australians that need financial advice now.
“It’s time for Stephen Jones to step up or step out.”