Professional bodies have also been quick to point to a collaborative approach with the new government.
The Financial Services Council (FSC) simply requested that parliament respect the incoming government’s mandate “to enable consumer and business confidence to be restored”.
“The election is over and business and consumers now demand certainty,” FSC chief executive John Brogden said.
“After three years of policy uncertainty, Australians need stability from the government.
“Parliament must allow the new government to pass legislation within its mandate. If this mandate is blocked in the Senate, Australia will endure further uncertainty and instability. This would be a disaster for consumer and business confidence.”
The FSC, he added, is looked forward to working with the new government on long-term policy initiatives.
Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos says the most immediate challenge facing the industry is the implementation of superannuation reforms.
“The timing of the election left many issues regarding the implementation of superannuation reforms unresolved. Ultimately it is in fund members’ best interests that implementation costs are minimised and that risks are managed in a prudent manner,” Ms Vamos said.
ASFA also welcomed the promise of a ‘whole of financial system’ inquiry.
“There have been major changes to Australia’s economy, society and financial structures in the 15 years since the Wallis Inquiry. We are in a new digital and global economic environment, so it’s time once again to look at the financial system in its entirety,” Ms Vamos said.
“In particular, when it comes to superannuation, we need to look at how the system can be adjusted to accommodate the ageing population and very different individual consumer expectations, as well as continuing to drive strength in the economy, including investment in assets such as infrastructure.”
Association of Financial Advisers (AFA) chief executive Brad Fox said the AFA will proactively engage the incoming Minister for Financial Services and Superannuation and seek to contribute to the new government’s financial services and superannuation agenda.
“We will be particularly interested in the government’s approach to improving the effect of the Future of Financial Advice (FOFA), Stronger Super and Default Super reforms,” he said.
The Financial Planning Association congratulated the Coalition on the election win and said it looked forward to working with the new government on its previously outlined changes to FOFA, including the removal of opt-in provisions, simplification of fee disclosure statements, more flexibility on allowing for commissions on insurance inside superannuation and clarity on best interests duty to allow for scaled advice.
“We have worked well with senator Mathias Cormann and we now eagerly await the announcement of our relevant Minister,” FPA chief executive Mark Rantall said.
Meanwhile, AMP chief economist Shane Oliver said the key policies of the new government should lead to less regulation and, over time, improved productivity and economic growth.
Signficant uncertainty at this stage revolves around the likely make up of the Senate, but the historically business-friendly approach of the Coalition suggests a positive share market response over time, according to Mr Oliver. Towers Watson noted that it is not yet known whether incumbent Mathias Cormann will retain responsibility for the financial services and superannuation portfolio.
Likely budget-relevant policy changes include the abolition of the mining tax and emissions trading scheme; public service cuts; deferral in the increased superannuation guarantee; and the removal of low-income super contribution, and a 1.5 per cent cut to the corporate tax rate.
Mr Oliver tipped the response in financial markets, and particularly from the share market, to the change of government will be positive.
He noted that despite the ongoing impacts of a range of global factors on the domestic economy, “given the unstable policy environment of the last few years in Australia, partly associated with minority government, the relatively subdued levels of business and consumer confidence and the business-friendly policies of the Coalition, there is likely to be a favourable reaction to the change of government evident over time”, Mr Oliver concluded.
