The government’s decision to rejig the financial services and superannuation portfolio handled by Bill Shorten has been criticised by the opposition, which claims breaking up the role downgrades its importance.
In a recent cabinet reshuffle, Chris Bowen was confirmed as treasurer with David Bradbury named assistant treasurer and, amongst other portfolios, “Minister Assisting for Financial Services and Superannuation”.
Bowen preceded Shorten as Minister for Financial Services and Superannuation in 2009. Shorten has a new role as both Minister for Education and Minister for Workplace Relations.
However, the opposition claims the government has “significantly downgraded” the importance of financial services and superannuation by eliminating a minister with dedicated responsibility.
“The Treasurer’s responsibilities have always included financial services and superannuation,” said Senator Mathias Cormann.
“However, in the past a dedicated Minister had specific responsibilities for this important area.
“Instead, the Rudd Labor government has decided to downgrade financial services and superannuation to a mere ‘Minister Assisting’ position.
“This continues the progressive downgrading of financial services and superannuation under the current Labor government, with a part-time Financial Services and Superannuation Minister in Bill Shorten over the past year.”
More transparent, efficient and fairer
With the Future of Financial Advice (FoFA) reforms becoming law from today, Shorten was quick to defend his legacy.
“I am proud of our achievements since taking on this portfolio in 2010. Beginning today, universal superannuation will finally begin to move to 12 per cent – a long overdue reform, boosting the retirement incomes of 8.4 million working Australians.
“We’ve made the superannuation system more transparent, efficient and fairer by stripping away unfair and hidden fees, allowing those approaching retirement to top up their super when the markets are strong and they need it most, and moderating tax concessions on super when adequate balances have been built, to make the system more sustainable for the future.
“We’ve bought the financial planning industry into the 21st century by removing conflicted remuneration structures and challenging the industry to become more professional, a challenge which I think the industry has and will continue to rise to.”
However, Cormann said Shorten would be remembered for tying the industry in red tape.
“As well as imposing massive additional red tape on the financial services sector, he did everything he could to protect the vested commercial interests of the union movement at the expense of the broader public interest,” he said.
“Bill Shorten’s so called Future of Financial Advice changes and other changes to super have increased compliance costs for financial services and superannuation by a staggering $1.5 billion.
“This massive increase in compliance burden has pushed up the cost and reduced the availability and accessibility of financial advice for consumers.
“His FoFA changes have led to an increased concentration of financial services and a lessening of competition, leaving consumers worse off.”
