Financial Advice Association Australia has criticised last week’s federal budget, saying it provides “very little for financial services, let alone financial advisers” and fails to address the rising cost of providing advice.

GM of policy, advocacy and standards Phil Anderson said: “There is very little news in this federal budget and it is light on detail. It is disappointing that the government has not been able to move ahead on a clear pathway in improving the accessibility and affordability of financial advice at a time when an increasing number of Australians would benefit from professional quality advice.”

In its pre-budget submission, FAAA had urged the government to address challenges facing the advice profession. Its wish list included lowering the Australian Securities and Investments Commission levy; enhancing tax deductibility of advice; and making the compensation scheme of last resort more equitable and sustainable.

The submission said: “Further action is also essential to improve the efficiency and reduce the costs of providing financial advice, so that advisers can service more clients at a high standard. With our additional measures, aimed at increasing the supply of and reducing the cost of financial advice, we believe the total package will successfully achieve the government’s stated aim of ensuring more Australians have access to high-quality and affordable financial advice.”

Meanwhile, the Financial Services Council says the “no surprises” budget delivers stability and certainty for the industry and its consumers ahead of the May federal election. CEO Blake Briggs said: “We congratulate the Treasurer for focusing on cost-of-living challenges facing Australians.”