Organisations see plenty of opportunity for financial advice
practitioners with the release of the 2015 Federal Budget,
Olivia Long, XpressSuper and SuperGuardian chief executive says the Budget has strengthened the case for consumers to seek
financial advice and stated that, “professional financial advice has never been more important.”
Long said, “the two key long-term goals of retirees of preserving capital and generating income should remain sacrosanct…these new policies will change how you achieve these two goals and that’s where you need professional advice.”
While Longs says that changes to the part pension which will see 90,000 retirees lose their part pension and the increases to social security assets test will affect SMSF, their will be no doubt be trustees and members who will need new strategies to achieve their retirement goals.
Furthermore, with the assets-free threshold for homeowners rising to $250,000 for singles and $375,000 for couples from 2017, and the tapering rate rises from $150 to $300 per $1000 over the assets threshold, Long sees an abundance of opportunities for financial advisers. “Long-term retiree goals of preserving capital and generating income should remain but professional advice will be needed as the new policies will change how the goals are reached, she reiterated.
The AFA has also been broadly supportive of the 2015 Budget “creating a confidence and
momentum shift in the Australian economy. ” AFA CEO Brad Fox said that, “in considering the
impact on financial advice businesses the AFA believes that the asset deduction initiative will help financial advice practices to bring forward a spend on assets to support dealing with
current disruptive changes.”
Fox sees that the Budget announcements, represents “an incentive for financial advisers to bring forward changes in the way they do business including office refits and technology