The federal government has begun consulting on proposed laws comprising the second tranche of its financial advice reforms.

Key changes in the draft Treasury Laws Amendment Bill 2025 include replacing the statement of advice with a fit for purpose client advice record; providing rules on what advice topics can be collectively charged for via superannuation; and allowing super funds to provide “targeted” prompts to members to drive greater engagement with super at key life stages.

Assistant Treasurer Stephen Jones said: “The government continues to develop legislation to modernise the best-interests duty and create a new class of adviser. Reforming the best-interests duty and removing the safe harbour steps will provide advisers with confidence to deliver appropriately scaled advice.”

The draft laws make no specific mention of a new class of adviser the government previously said would be created to allow insurers – life and general – to provide simple advice.

Mr Jones said: “The new class of adviser is also vital to allowing life insurers, financial advice licensees, superannuation funds and other institutions to expand the supply of quality and affordable advice to consumers. These remaining pieces will be consulted on and combined with the draft legislation released today to be introduced into parliament as a single package. The whole package works together to expand access to affordable, quality financial advice.”

The Council of Australian Life Insurers has welcomed the latest financial reform push.

“This announcement confirms the government’s commitment to reforming financial advice and improving financial outcomes for all Australians, but there’s still more work to do,” CEO Christine Cupitt said. 

“CALI has long advocated for more affordable, accessible financial advice by allowing life insurers to provide simple answers to simple questions at no extra cost to them. We will continue our collaboration with the government on the remaining Better Financial Outcomes reforms to ensure all Australians can access the support they need to build a secure financial future.”

Radford Lawyers principal solicitor Mark Radford says the draft bill provides for replacement of statements of advice with a client advice record, but does not remove any obligation to provide one.

“That said, there is no change to the scope of the existing general insurance exemption for SOAs (excluding sickness and accident and CCI), but similar obligations remain in place where the exemption applies,” he told insuranceNEWS.com.au.

“Importantly, the changes do not cover off on proposals regarding the modernisation of the best-interests duty and creation of a new class of qualified adviser, which can have a significant impact on the general insurance industry.

“The minster’s statement provides no additional guidance regarding the scope of these changes other than to note that they will be consulted on and combined with the draft bill and will be introduced into parliament as a single package.”

The consultation closes on May 2. Click here for details.