In another embarrassing blunder for the Assistant Treasurer Stephen Jones, the first tranche of Labor’s legislation in response to the Quality of Advice Review has been slammed as a “hot mess” by key industry groups.

This is the same legislation which Labor is scrambling to redraft because it would have forced insurance brokers to overhaul their entire business model.

Financial advisers are today warning that it will add red tape and drive up costs for customers because it requires superannuation trustees to check every piece of advice given to members.

This is the consequence of a government that is asleep at the wheel.

It’s taken Labor a staggering 16 months to begin responding to the review, with no timeline still for a full legislative response.

Despite the delay, it’s clear that instead of using that time to draft considered legislation, the government has failed to get the basics right, creating more problems than solutions.

Shadow Treasurer Angus Taylor said Labor’s failures to progress meaningful reforms are creating an Australia that is under banked, under insured and under advised.

“The Albanese Labor government was handed a considered and timely review by Ms Michelle Levy that would have provided a safer, simpler and cheaper financial advice to all Australians.

“Instead, the government has been dragged kicking and screaming to respond to what should be a seminal productivity roadmap for our finance advice sector.

“Unsurprisingly, the first tranche of the legislation is riddled with errors that put other vital measures in the bill at risk.

“Labor just can't help itself. Stephen Jones is making access to advice harder, at a time Australians are crying out for affordable financial advice.

Shadow Assistant Treasurer Luke Howarth said Minister Jones has proven how out of touch and out of depth he is.

“At a time when it has never been more important for Australians to have access to quality financial advice, the proposed Treasury Laws Amendment (Delivery Better Financial Outcomes and Other Measures) Bill 2024, as it currently sits, will make financial advice more inaccessible and expensive.

“The only thing the Assistant Treasurer has successfully delivered in his scrambled legislation is confusion and chaos.

“Industry players have been crying out for reform, only to have their concerns met with deaf ears. They are rightly angry.

“The government must act to immediately fix its mess. It’s time Stephen Jones steps up or steps aside.”

ENDS.