The federal budget has failed to address cost challenges facing advisers, Financial Advice Association Australia says.

In the run-up to last week’s budget, the peak body had called on the government to better manage costs across the Compensation Scheme of Last Resort and implement a fairer Australian Securities and Investments Commission funding levy for advisers.

Association CEO Sarah Abood says there is “little remedy for the skyrocketing costs that advisers have been and will continue to pay”, despite Financial Services Minister Stephen Jones’ acknowledgement of the sector’s importance.

“Much of these costs will inevitably be passed on to consumers, further raising the cost of professional financial advice that more Australians need more than ever,” Ms Abood said.

She says the peak body will continue urging the government to address the sector’s cost pressures.

The Financial Services Council says it welcomes the government focusing on its long-term plan for financial services and the investment community with a “no surprises” budget.

“Australia’s investment community is key to the transition to a low-carbon economy and the federal budget recognises the importance of developing an internationally aligned regulatory regime and a clear investment product labelling framework,” council CEO Blake Briggs said.