Commissions on life insurance sold within superannuation might have survived the legislators’ axe, but the Federal Government won’t be doing anything to disturb the states’ stamp duty on insurance contracts.

Speaking at the Financial Services Council conference on the Gold Coast last week, Assistant Treasurer Bill Shorten said the Government is looking at the issue of life insurance commissions again.

“I am a little more persuaded around the case for life insurance commissions in super,” he said.

But when asked about removing stamp duty on insurance contacts, he was clearly annoyed the topic had been raised.

“Why does reform mean business paying less tax?” he said. “The industry should pick up on the clues we have given on commissions.

“The legislative debate is about efficient taxes.

“If a section of the industry says that we should pay less tax, they will be disappointed.”

Mr Shorten also ruled out any changes to the opt-in proposals, saying it’s a choice between that and commissions.

“Opt-in is no disaster for the industry,” he said. “I don’t think it is best practice (not having opt-in).”

The change of mood on commissions by Treasury was been welcomed by all sectors of the life industry, even if the announcement did catch people by surprise.

The Association of Financial Advisers (AFA), which has fought hard on the issue, has called it a “victory for consumers”.

CEO Richard Klipin says the association is pleased Mr Shorten is “having a rethink”.

“We have consistently called on Minister Shorten to take a consumer-focused approach to the Future of Financial Advice reforms and it appears he is doing that,” he said.

“We are now looking forward to seeing more detail from the Government on the commissions issue.”

Financial Planning Association (FPA) CEO Mark Rantall says his association’s work behind the scenes influenced the change.

“While we haven’t been overly vocal about our role in public, we have been working closely with the minister’s office and Treasury to provide constructive advice on the issue which has led to this outcome,” he said.

Mr Shorten used his address to the conference to praise the FPA’s less strident approach.

“The FPA has put up a good lobbying campaign in opposition to another body,” he said, obliquing referring to the AFA.

insuranceNEWS.com.au understands the very vocal lobbying by the AFA has annoyed Mr Shorten.

The financial services industry has never before united over an issue and fought so hard against a planned measure. insuranceNEWS.com.au has been told by industry sources that the level of opposition has surprised Treasury and the minister.

Mr Shorten did say the MP for Robertson, Deb O’Neil, and the MP for Oxley, Bernie Ripoll, had been influential in pushing the case for a change on commissions.

Mr Klipin says a number of AFA members have visited both these MPs to argue their case.