Financial Advice Landscape Set for Further Overhaul
Financial Advice Landscape Set for Further Overhaul
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Financial industry professionals are bracing for significant changes as new reforms surrounding commission consent in financial advice have moved into effect.
With the successful passage of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024, the sector anticipates a substantial shift in how financial advisories are delivered to retail clients.
This legislation marks a pivotal first step in a series of upcoming financial advice reforms initiated by the federal government. It mandates brokers to obtain consent when charging commissions for personal advice, aiming to foster better transparency and affordability in the financial advice provided.
According to the National Insurance Brokers Association (NIBA), these reforms will play a critical role in ensuring that comprehensive risk advice remains both accessible and affordable across Australia. "We are eager to partner with the government and regulatory bodies to implement these reforms," said a representative from NIBA. "Our focus is to support our members in navigating these changes without compromising the quality of advice they deliver."
NIBA has pledged to work closely with its members throughout the year to facilitate adherence to the new legislative requirements. The organization is set on equipping its members with the necessary tools and guidance to continue offering premium services while ensuring compliance with the latest standards.
Meanwhile, insurers are also gearing up for the next round of reforms. A spokesperson from the Insurance Council of Australia expressed readiness to engage in phase two consultations. "The subsequent phase of these reforms addresses the unmet demand for financial advice among individuals with straightforward financial scenarios," the spokesperson remarked. "We are keen to explore the opportunities this presents."
Stephen Jones, Financial Services Minister, emphasized that the new legislation augments transparency and strengthens consumer safeguards in personal insurance advice. He mentioned that the next set of reforms, slated for development later this year, aims to enhance both the reach and affordability of financial advice across the board.
"Our forthcoming reforms will modernize key aspects of financial advising, including the revision of statements of advice and the best-interests duty. Additionally, changes are set to enable financial institutions to provide what we term 'simple' advice, a valuable addition for consumers with straightforward needs," Jones noted.
It is worth mentioning that the recently passed bill included crucial amendments to rectify draft errors that might have inadvertently banned commissions for brokers providing general advice. Furthermore, it contains a provision allowing individuals to leverage their superannuation accounts to cover costs associated with receiving personal financial advice from independent advisors.
These industry-changing reforms promise to reshape the financial advisory landscape significantly, making quality advice more transparent, accessible, and affordable for all Australians. Immediate and collaborative efforts from industry players are cited as imperative for a smooth transition. As reported by Insurance News Magazine, Assistant Treasurer Stephen Jones has indicated his firm stance against succumbing to populist politics concerning affordability, emphasizing a balanced and well-developed approach to these reforms.
Australian private health insurance premiums are set to rise by an average of 4.41% from 1 April 2026, marking the most significant increase since 2017. Health Minister Mark Butler stated that this adjustment reflects the escalating costs of medical and hospital services, which have risen by 5% over the past financial year. This increase is expected to impact over 15 million Australians who hold private health insurance policies. - read more
In response to escalating operational costs faced by private hospitals, health insurers have increased their payments to these facilities. Recent data indicates that payments to private hospitals have risen by 7.7% in the year leading up to March 2025. This adjustment aims to support private hospitals during a period of financial strain and to ensure the continued delivery of quality health care services. - read more
In a significant policy shift, Australian health insurers will begin offering rebates for a range of natural therapies, including Yoga, Pilates, Tai Chi, Shiatsu, Naturopathy, Western herbal medicine, and the Alexander Technique, starting early 2026. This change follows legislative amendments allowing these therapies to be covered under private health insurance for the treatment of health conditions or as part of health management programs. - read more
As 2026 approaches, Australian insurers are facing a trio of pressing challenges: rising premium costs and shrinking insurability, escalating cyber and data risks, and increasing difficulty in hiring and retaining skilled workers. These concerns have been highlighted in industry feedback cited in Gallagher Bassett’s upcoming report, 'The Carrier Perspective: 2026 Claims Insights.' - read more
In recent times, Australian consumers have been grappling with substantial increases in insurance premiums, prompting widespread concern and calls for greater transparency within the industry. Reports indicate that some policyholders have experienced premium hikes of up to 600%, leaving many questioning the justification behind such steep increases. - read more
For generations, farmers have faced the challenge of protecting their crops from an array of threats, such as pests, diseases, and extreme weather. Traditional crop protection strategies have relied heavily on blanket approaches, as in using widespread pesticide application, or generalized irrigation systems, regardless of the varying needs across a field. While these methods have had their successes, they also come with limitations in efficiency, environmental impact, and the precision needed for optimal crop health and yield. - read more
Welcome to our discussion on farm insurance, a crucial subject for every Australian farmer. Whether you're seasoned in agricultural ventures or just starting out, the world of insurance can often seem daunting and complex. - read more
Welcome to the world of farm insurance, where no two policies are the same, just as no two farms mirror each other in operations and risks. As a farmer, you are acutely aware that your agricultural endeavors bring a unique set of challenges and needs. Recognizing this diversity is the first step in protecting your livelihood. - read more
Welcome to our in-depth exploration of Machinery Breakdown Insurance—a safety net that's becoming increasingly important for the modern Australian farmer. Whether you're involved in cropping, dairy, or livestock, your equipment is the backbone of your operation. As farming technology evolves, the machinery becomes more sophisticated, and unfortunately, the more complex a system is, the more that can go wrong. This is where Machinery Breakdown Insurance comes into play. - read more
Welcome to our comprehensive guide on comparing insurance options for mixed farming. As a rural farm owner, you face unique challenges that require specialized insurance coverage to protect your livelihood. - read more
Knowledgebase
Double Indemnity: A clause or provision in a life insurance policy that doubles the payout in cases of accidental death.
