This bill became law on Jul 9th, 2024.
Budget, tax & economy
Super funds can now pay for a member’s personal adviceAdvice tailored to one person’s own situation, not general information for everyone. from that member’s super account when the member asks in writing and the advice rules are met.
Existing financial advice rules left super funds and advisers tied up in paperwork and made it harder to pay for personal adviceAdvice tailored to one person’s own situation, not general information for everyone. through super, while insurance commissions could still be taken without clear consent. The bill lets super funds pay eligible advice fees from a member’s account, shifts some disclosures online, stops ongoing fees without fresh consent, and requires consent for insurance commissions.
After the Hayne royal commission reshaped advice rules, advisers and super funds were left with disclosure-heavy processes that speakers said made financial advice harder and more expensive for ordinary Australians to access, prompting the Quality of Advice ReviewA government review that examined how to make financial advice cheaper and easier to access, and which this bill was meant to implement. delivered in December 2022. This bill became the first legislative response to that review in 2024, cutting paperwork, allowing eligible personal adviceAdvice tailored to one person’s own situation, not general information for everyone. fees to be paid from super, tightening consent for ongoing fees and insurance commissions, and then passing with government amendments before receiving Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament..
The main criticism was that the bill’s financial advice measures were badly drafted at first, risking extra red tape, higher compliance costs and making some insurance advisers commercially unviable. That concern was raised mainly by the Coalition, the Nationals and Allegra Spender, and support for the bill remained conditional until government amendments fixed key drafting problems.
Hon Dr Andrew Leigh MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 09 July 2024
Final passage
Passed without a counted vote
4 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
104 days
From introduction to the latest recorded parliamentary step
Meaning
Super funds can now pay for a member’s personal adviceAdvice tailored to one person’s own situation, not general information for everyone. from that member’s super account when the member asks in writing and the advice rules are met.
Super funds can claim tax deductions for eligible personal adviceAdvice tailored to one person’s own situation, not general information for everyone. fees they pay for members, and those payments are not treated as super withdrawals for the member.
Financial advisers no longer have to send annual fee disclosure statements, but ongoing advice fees now stop unless the client gives fresh written consent.
Advice providers can meet Financial Services GuideA document that explains who is giving the advice, what services they provide, and how they are paid; this bill lets firms put the same information on a website instead of handing out a separate paper guide. disclosure rules by putting the same information on their website instead of handing each client a separate guide.
People who give personal adviceAdvice tailored to one person’s own situation, not general information for everyone. on life, general or consumer credit insuranceInsurance linked to a loan or credit product, such as cover that helps pay repayments if the borrower cannot. and earn commissions now need the client’s informed consent before taking that commission.
(1) The trustee or the trustees of a regulated superannuation fund must not charge against a member’s interest in the fund the cost of financial product advice provided to the member unless:Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) as-passed bill text
amends the ITAA 1997 to provide legal certainty that payments of certain personal advice fees by a superannuation trustee from the member’s interest in the fund are deductible from the superannuation fund’s assessable income (to the extent they are not incurred in gaining or producing the fund’s exempt or non-assessable non-exempt income) and are not a superannuation benefit for the relevant members.Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) explanatory memorandum
Implements recommendation 8 of the Review by amending the Corporations Act to establish a consolidated and streamlined consent process for when a client enters or renews an ongoing fee arrangement and authorises ongoing advice fees to be deducted from a financial product. As part of these amendments, it removes the current requirement for advisers to provide a fee disclosure statement to their clients as part of an ongoing fee arrangement.Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) explanatory memorandum
An AFS licensee or an authorised representative of one or more AFS licensees, when providing personal advice, can choose whether to continue providing an FSG (in accordance with Division 2 of Part 7.7) or alternatively to make the FSG information available on their website as ‘website disclosure information’ (in accordance with new Division 2A of Part 7.7).Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) explanatory memorandum
Implements recommendations 13.7, 13.8 and 13.9 of the Review by amending the Corporations Act to provide that a person who provides personal advice to a retail client about a life risk insurance product, general insurance product or consumer credit insurance and receives a commission in connection with the issue or sale of that product must obtain the client’s informed consent before accepting the commission.Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) explanatory memorandum
Context
After the Hayne royal commission reshaped advice rules, advisers and super funds were left with disclosure-heavy processes that speakers said made financial advice harder and more expensive for ordinary Australians to access, prompting the Quality of Advice ReviewA government review that examined how to make financial advice cheaper and easier to access, and which this bill was meant to implement. delivered in December 2022. This bill became the first legislative response to that review in 2024, cutting paperwork, allowing eligible personal adviceAdvice tailored to one person’s own situation, not general information for everyone. fees to be paid from super, tightening consent for ongoing fees and insurance commissions, and then passing with government amendments before receiving Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament..
Quality of Advice ReviewA government review that examined how to make financial advice cheaper and easier to access, and which this bill was meant to implement. is delivered to government
Parliamentary speakers described the review as a major examination of how to make financial advice more accessible and affordable for Australians.
Hansard ↗Government introduces the first advice-law response
The second reading speech said schedule 1 was the first tranche of the Delivering Better Financial Outcomes packageThe government’s broader reform package for financial advice, of which this bill is the first legislative response. responding to the Quality of Advice ReviewA government review that examined how to make financial advice cheaper and easier to access, and which this bill was meant to implement..
Hansard ↗Parliament frames the bill as a fix for costly, hard-to-access advice
During House debate, members said post-Hayne reforms had not improved access and had instead made financial advice inaccessible or difficult for many Australians.
Hansard ↗Government amendments help the bill clear Parliament
Senate speakers said concerns about the bill as originally introduced had been addressed by amendments, after which both houses passed it in the same form.
Hansard and Parliamentary timeline ↗Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament. turns the reforms into law
Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament. completed the process and made the new rules on super-paid advice fees, disclosure and consent part of Australian law.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Referred to Committee (27/03/2024): Senate Economics Legislation Committee; Committee report (21/06/2024)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered amendments before the bill moved to the next stage.
Consideration in detail debate
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered amendments before the bill moved to the next stage.
Third reading agreed to :
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Consideration of Senate message
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill’s financial advice measures were badly drafted at first, risking extra red tape, higher compliance costs and making some insurance advisers commercially unviable. That concern was raised mainly by the Coalition, the Nationals and Allegra Spender, and support for the bill remained conditional until government amendments fixed key drafting problems.
No party represented in the debate opposed the bill as a whole after amendments addressed the main drafting concerns.
Bad drafting in advice reforms
Critics said schedule 1 was poorly drafted, creating confusion about how super funds could pay for personal adviceAdvice tailored to one person’s own situation, not general information for everyone. and how insurance commissions would operate. They warned that if left unchanged it could add red tape, raise costs and undermine confidence in using super to pay for advice.
Risk to insurance adviser business models
The proposed commission-related changes for life, general and consumer credit insuranceInsurance linked to a loan or credit product, such as cover that helps pay repayments if the borrower cannot. advice were criticised as potentially making many advisers unviable if the drafting was not corrected. The objection was not to the whole bill, but to implementation details that critics said could damage access to insurance advice.
Screen tax offset attacked as a Hollywood handout
A separate criticism targeted the bill’s screen-production tax measures, arguing they were bundled into an omnibus bill and amounted to a subsidy for large overseas productions while promised local-content streaming quotas were still delayed. This was a narrower objection aimed at one schedule rather than the whole package.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. Where APH reports aggregate counts, the package card summarizes the matching public amendment sheets by source theme.
House
Defeated 58 to 75. Support came from Liberal Party, Nationals, and minor parties and independents. Opposition came from Labor and Greens.
The House rejected the amendment, so the bill advanced without the added criticism and demand for immediate drafting fixes.
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Government amendments clarify the bill by replacing repeated references to personal advice with financial product advice and making related drafting changes in financial services guides and insurance commissions provisions.
Passed on the voices
The chamber agreed to this amendment package without a counted vote. APH records the agreed count by amendment, while the source documents are grouped into amendment sheets.
Senate
Defeated 14 to 36. Support came from Greens, Jacqui Lambie Network, One Nation, and minor parties and independents. Opposition came from Labor, Liberal Party, Nationals, and UAP.
The Senate rejected the proposed second-reading statement, so the bill continued without that criticism and call to action attached.
Defeated 13 to 37. Support came from Greens, Jacqui Lambie Network, and One Nation. Opposition came from Labor, Liberal Party, Nationals, and UAP. Minor-party and independent votes were split.
The Senate rejected the proposed second-reading statement, so the bill proceeded without that added criticism and policy call.
Passed 39 to 11. Support came from Labor, Liberal Party, Nationals, Jacqui Lambie Network, and minor parties and independents. Opposition came from Greens and One Nation.
The bill was amended to narrow when adviser fees can be paid from a member’s super balance.
The APH progress record says 8 government amendments were agreed on voices, without a counted division being collected by this run.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
The parliamentary record also shows 8 Government amendments agreed without a counted division.
Parliamentary debate
Start here — lead voices
Leigh supports the bill and says it will cut red tape, improve the integrity of the tax system, and deliver better financial outcomes.
Read in Hansard ↗Luke Howarth says the coalition will not oppose the bill’s second reading, but he argues it contains drafting errors and needs urgent amendments to stop higher costs and red tape in the financial advice sector.
Read in Hansard ↗Spender says she supports the bill, especially the screen-industry incentives in schedule 6, because they will help keep international production in Australia and support local jobs and investment.
Read in Hansard ↗Hanson-Young says the bill's location tax offset does some good for work in Australia, but she criticises it as a handout to Hollywood bundled into an omnibus bill while the government has still not delivered promised streaming quotas.
Read in Hansard ↗All speeches by bloc
3 speakers · 3 support
“With this bill, the Albanese Labor government is reducing red tape and removing regulatory barriers that don't add a consumer benefit and are making professional advice very costly. By providing clearer legislative support for personal and general advice, this legislation will reduce the number of hoops consumers have to jump through in order to receive assistance. It will provide greater flexibility for providers of personal financial advice and apply that flexibility to more advice situations to maximise the benefits from this measure without weakening consumer protections.”Read the full speech in Hansard ↗
“This bill contains six schedules which range from red tape to red carpet and deliver better financial outcomes while improving the integrity of the Australian taxation system.”Read the full speech in Hansard ↗
“This bill is just the start of the government's response to the Quality of Advice Review, with tranche 2 of our Delivering Better Financial Outcomes reforms on the way as well. Despite all the hyperbole from the Greens and all the negativity from the Liberals in this chamber today, these are reforms that are well supported. These are reforms that will allow more Australians to access financial advice and make it more affordable for them. It's as simple as that.”Read the full speech in Hansard ↗
4 speakers · 3 support · 1 mixed
“In conclusion, whilst the coalition supports the intent behind this bill, and will not oppose its second reading, we emphasise the need for urgent amendments to address the current flaws.”Read the full speech in Hansard ↗
“One of the things we have highlighted that our support will be contingent on is fixing the drafting around the ban on insurance commission structures that are linked with financial advice.”Read the full speech in Hansard ↗
“On the basis of these amendments, the coalition will be supporting this bill. This bill represents the first legislative response to the Quality of Advice Review, commissioned by the former coalition government and delivered to the government in December 2022.”Read the full speech in Hansard ↗
“The point that was made on this bill is that the drafting was going to mean that every piece of advice needed to be checked by the trustee and that it may have introduced some uncertainty around whether or not financial advice can be paid for from the superannuation account. This position was defended by government, as I said before. Now the government has capitulated and agreed to make the amendments we had flagged that now give confidence that people who wish to pay for financial advice from their superannuation account can do just that. That is a positive.”Read the full speech in Hansard ↗
1 speaker · 1 unclear
“This location tax offset will help some here in Australia, and that is good. But, most of all, it is helping Hollywood and the American companies. Meanwhile, our domestic industry is left waiting, with promise after promise being broken. The government is dragging the chain, and our industry is being told to wait. The only people who are really cheering now that 1 July has passed without legislation and regulation are Netflix, Amazon and the big US global giants. The ministers need to do better.”Read the full speech in Hansard ↗
1 speaker · 1 support
“While I support this legislation, I am concerned by the length of time it has taken to be introduced in the House and disappointed that it has not been accompanied by other measures to support our domestic screen producers.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Consideration in detail: amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
House · Consideration of Senate message
House agreed to Senate amendments
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (21/06/2024)
Referred to committee
Referred to Committee (27 Mar 2024): Senate Economics Legislation Committee; Committee report (21 June 2024)
APH bill page notes
