Yesterday, the prime minister announced a new cabinet and ministerial line-up, with former financial services and superannuation minister Bill Shorten moving to the education portfolio and retaining his role as workplace relations minister.
Financial services and superannuation policy will now be administered by the incoming federal treasurer, Chris Bowen, and assistant treasurer David Bradbury, who has also been named minister assisting on financial services and superannuation.
The shared responsibility for the portfolio indicates a shift from the current ministerial structure in that no one minister will have sole responsibility of the policy area.
In a statement, shadow minister for financial services and superannuation Mathias Cormann said the move indicates a “progressive downgrading” of financial services as a policy priority.
“The Rudd Labor government has significantly downgraded the importance of financial services and superannuation by eliminating a minister with dedicated responsibility,” he said.
“The treasurer's responsibilities have always included financial services and superannuation. However, in the past, a dedicated minister had specific responsibilities for this important area. Instead, the Rudd Labor government has decided to downgrade financial services and superannuation to a mere 'minister assisting' position.”
Senator Cormann also took the opportunity to lambast outgoing financial services minister Bill Shorten, who he described as having been a “part-time” minister and had often criticised for focusing more on internal party politics than his ministerial portfolio responsibilities.
“During his time as financial services and superannuation minister, Bill Shorten made Australia into the world champion of financial services red tape,” Senator Cormann said.
“As well as imposing massive additional red tape on the financial services sector, he did everything he could to protect the vested commercial interests of the union movement at the expense of the broader public interest.
“Bill Shorten's so-called Future of Financial Advice changes and other changes to super have increased compliance costs for financial services and superannuation by a staggering $1.5 billion.”
Mr Shorten also released a statement yesterday, listing his achievements as financial services minister as he leaves the portfolio.
“I am proud to have worked with colleagues to secure a number of historic Labor reforms,” he said. “We have built upon the great legacy of Hawke and Keating, which improve the transparency and fairness of our financial services sector, while making our superannuation system more sustainable for the future.”
The new education minister listed the Future of Financial Advice reforms as among the top achievements of his ministerial reign, claiming the regulations have brought the financial planning industry into the 21st century.
“I am certain that Treasurer Chris Bowen and Assistant Treasurer David Bradbury will continue Labor’s legacy of working towards providing all Australians with a dignified retirement,” he said.
The Institute of Chartered Accountants responded to the ministerial reshuffle, calling on Treasurer Chris Bowen to “continue implementing important reforms to the superannuation and financial services sectors as scheduled”.
ICAA general manager, leadership and quality, Yasser El-Ansary praised the outgoing minister for his role in spearheading the reform agenda.
“Minister Shorten has worked hard, particularly in the superannuation sector, to deliver once-in-a-generation reform that will help ensure our system remains viable in the face of an ageing population,” he said.
“We thank him for pursuing these reforms and for being willing to engage in a constructive dialogue with the business sector as part of his consultative processes.”
Meanwhile, Financial Planning Association board member Patrick Canion took to Twitter to call on the incoming financial services minister to honour Mr Shorten’s “promise to enshrine the term ‘financial planner’”.
The government first signalled its plans to enshrine the terms ‘financial planner’ and ‘financial adviser’ in March 2012. The legislation was first tabled in parliament in March this year, tied to the unrelated Corporations Amendment (Simple Corporate Bonds and Other Measures) Bill 2013: Amendments, and passed the House of Representatives in late May.
It was due to be debated in the Senate last week – the last sitting week of the current parliament – but didn’t make it into the schedule as a rush of other legislation was passed.
