THE Financial Services Council (FSC) has welcomed the Federal Government’s recent decision to provide temporary and targeted relief to financial advisers, by reducing the cost recovery levies charged by ASIC.

FSC CEO Sally Loane said, “We are pleased the government has recognised the cost pressures on the financial advice sector. The temporary relief will give the 19,000 advisers in the sector hope the government understands the challenges facing the financial advice industry and will take further action to reduce the costs of regulatory burden on advisers.

“The FSC’s Green Paper Affordable and Accessible Advice noted advice licensees are facing significant regulatory costs that are resulting in advisers leaving the industry. Financial advice has been subject to a 'Gordian knot' of prescriptive and overlapping compliance, which has significantly added to their cost of doing business and made advice more expensive for Australians,” Ms Loane said. "Advisers need the opportunity to spend more time with their clients, particularly as we try to recover from the pandemic

“The FSC also welcomes the government’s announcement that it will review ASIC’s Industry Funding Model while this relief is in place to ensure that it remains fit for purpose.”

As the industry collaborates on ways the cost of financial advice can be reduced, the announcement gives hope of more substantive deregulation following the Government’s Review of the Quality of Financial Advice post 2022. Reforms to reduce the cost of advice have been proposed in the FSC’s Green Paper and soon to be released White Paper on Financial Advice.

www.fsc.org.au

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THE PEAK advisory body for some of the largest providers of community care is calling on the Federal Government to mandate the vaccination of disability support workers against COVID-19 as the Delta variant continues to rip through communities.

Catholic Health Australia (CHA) has written to Prime Minister Scott Morrison and the Minister for the National Disability Insurance Scheme, Linda Reynolds, urging them to trigger a Commonwealth mandate vaccination program much like the one for residential aged care workers. 

With only about a third of disability support workers fully vaccinated, CHA members are asking for action as the Delta variant continues to spread through the community. CHA members say the ‘opt in’ model is not working and the only way to expedite the vaccination program is to make it mandatory.

The Commonwealth has already made it compulsory for residential aged care workers to get their first shot by the middle of this month and now states are requiring health workers to get vaccinated. 

CHA director of mission and strategy, Rebecca Burdick Davies said, “If mandatory vaccination is good enough for residential aged care and health care workers then surely it must be good enough for disability support workers.

“We have a duty to protect the most vulnerable in our community and we can start by requiring our staff to be vaccinated. These workers are going into people’s homes and moving around the community - it is part of their job description. Their place of work is the community and we have learned that the Delta variant spreads rapidly via mobile workforces.” 

Ms Burdick Davies said as new supplies of COVID-19 vaccines came on stream there should be no excuses for not mandating vaccine disability support workers. 

“Every day we delay is another day where people living with a disability and the people that care for them are exposed to unnecessary risk. Our members are already organising the vaccination of staff but for the minority who are hesitating for whatever reason, that hard push from government will draw a line in the sand.”

Mark Phillips, CEO of CatholicCare Sydney, said, “As vaccination levels rise and we open up our communities, it will be increasingly difficult to protect vulnerable clients and our own staff in the way that we should if we have unvaccinated workers. 

“A government mandate for vaccinations for our workers will assist us to put in place the protections that our clients, our staff and the community expect.”

Jack de Groot, CEO of the St Vincent de Paul Society NSW, said, “Vinnies is committed to the care and well-being of some of our community’s most forgotten and hidden people.  The lives of those Australians living with disability matter.  Their well-being requires a workforce that is healthy, and which strives every day to make a real difference to those living with disability.  

“Mandatory vaccination in our services should be part of the normal requirements to maintain the health and safety of our communities.” 

CHA members include, among others, St Vincent de Paul NSW, St Vincent de Paul Queensland, Catholic Healthcare, CatholicCare, Ozcare, St John of God Healthcare, and St Vincent’s Health Australia.\

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AUSTRALIA'S professional accounting bodies are grateful for the temporary ASIC fee relief for financial advisers announced recently by the Federal Government. However, they cannot understand why other parts of the accounting profession, which have also been hit by steep fee increases, have been ignored.

CPA Australia, Chartered Accountants Australia and New Zealand and the Institute of Public Accountants are urging the Feeral Government to extend this relief to all financial services participants, not just financial advisers.

This would provide widespread regulatory certainty while the profession awaits the review of the ASIC Industry Funding Model.

ASIC fees for financial advisers have increased by more than 230 percent over the past three years. Most financial advisers are sole traders or small businesses and cannot afford these rising costs. The total number of financial advisers now sits at just over 19,000, a loss of more than 2000 since November 2020.

Restoring ASIC fees to their 2018-19 level for the next two years comes as welcome relief for financial advisers. This decision will directly improve business viability and adviser retention rates. These are issues which also severely impact other financial services participants.

Registered company auditors, for example, have seen their registration fee more than quadruple in a short period of time. For 2020-21, the individual levy for a registered company auditor will rise to $1,127 from $208 in 2018-19. This comes at a time when auditor numbers are declining.

Insolvency practitioners are charged ASIC industry fees at a flat rate of $2,500 per year and then per 'notifiable event'. This structure makes it hard to precisely quantify ASIC fee increases. The professional accounting bodies are nonetheless aware that insolvency practitioners are finding rising fees debilitating and difficult to budget for.

The most recent announcements recognise the debilitating impact that ASIC industry fees are having on the profession and acknowledges the government’s role in controlling fee increases.

But the accounting professional bodies said it did not make sense to discriminate between participants by granting relief to some while ignoring others.

"We look forward to the review of the ASIC industry fee model in 2022 and will actively participate in the consultation process," read a statment from the professional bodies. "It will be important for this review to examine the impact of ASIC industry fees on all participants."

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THE Accommodation Association today thanked the NSW Government for unveiling its Roadmap to Freedom for the fully vaccinated, especially given the important lead-in timeframe which will allow hotels and motels to properly prepare.
 
The NSW Roadmap and the very clear communication of the threshold trigger of 70 percent double vaccinated, plus the framework under which reopening would be delayed or restrictions reimposed, is exactly what the Association has been asking for on behalf of members and their teams.

Accommodation Association CEO Dean Long said, “Our sector is one of the hardest hit and the fact that we now have a Roadmap to Reopening in NSW with clarity on what’s involved and when we are all able to start living and operating a bit more normally is very welcome.
 
“Hotels and motels can’t just throw open their doors and open their rooms on the day restrictions lift. They need time to prepare, to bring back the team, to provision up and to put all the necessary systems in place to deliver the best and safest experience for guests and for staff," Mr Long said.
 
“Getting back to a more normal life as soon as possible and as safely is possible is in all our interests so please get fully vaccinated as soon as possible and encourage those around you to do the same so that we hit that magic 70 percent threshold as soon as possible.”