Financial Services Council welcomes 2022-23 Federal Budget
THE 2022-2023 Federal Budget has delivered on the Fedetal Government’s promise to implement its election commitments, according to the Financial Services Council (FSC).
FSC CEO Blake Briggs said, “The Government’s new Housing Accord delivers on the Government’s commitments and the financial services industry looks forward to the opportunity to take on the historical challenges that have prevented institutional capital from investing in affordable housing.
“The FSC will work constructively with Government to ensure that any capital deployed is consistent with the legal obligation on superannuation trustees to promote the best financial interests of members.”
The FSC also welcomed additional funding to introduce climate reporting standards for large businesses and financial institutions, in line with international reporting requirements.
“The Government has responded to funds management industry calls for a mandatory, principles-based climate-reporting regime that will support investment in climate reduction and abatement, and we look forward to supporting the Government with this initiative,” Mr Briggs said.
The FSC also welcomed the Government’s Women’s Economic Equality Taskforce, which will advise on the optimal settings for the extension of the Government Paid Parental Leave scheme from 18 to 26 weeks, but urged the Government to go further to promote women’s economic security in retirement.
“It would be a missed opportunity if this taskforce did not recommend paying superannuation contributions on the Government’s paid leave program, which would help close the gender gap in superannuation – women on average have 25 per cent less superannuation than men at retirement," Mr Briggs said.
The FSC was also encouraged to see the Federal Budget contained no adverse changes to superannuation taxation and contribution settings.
“Stability in the superannuation tax and contribution settings ensures consumers have the confidence they need to make financial plans for their future as they battle inflation and plan for an uncertain global outlook," Mr Briggs said.
“Future budgets must continue to honour election commitments to provide stability and certainty in superannuation policy settings, and an enhanced focus on structural reform and economic growth to achieve Budget sustainability – not just increased taxes.”
About the Financial Services Council
The FSC is a peak body which sets mandatory standards and develops policy for more than 100 member companies in one of Australia’s largest industry sectors, financial services. FSC Full Members represent Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers and financial advice licensees. Supporting Members represent the professional services firms such as ICT, consulting, accounting, legal, recruitment, actuarial and research houses. The financial services industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange, and is one of the largest pools of managed funds in the world.