Millions of Australians will gain expanded access to retirement advice under a new federal government initiative. 

New reforms will allow superannuation funds to provide “limited” financial advice, addressing widespread demand for affordable, accessible guidance. 

However, consumers will be required to pay fees, even if they do not use the service.

Assistant Treasurer Stephen Jones says current laws, introduced after the banking royal commission, have inadvertently restricted Australians from obtaining simple advice from their super funds. 

“We want to ensure members have access to the information they need, but it must be safe and affordable,” he said.  

The reforms will create a new category of diploma-qualified financial advisers, tasked with offering advice on straightforward matters such as insurance selection and basic retirement queries. 

These advisers will not handle complex issues, including self-managed super funds or managed investment schemes, which will remain the domain of professional financial advisers.  

To address concerns about accessibility and fairness, the government plans to modernise the “best interests” duty, streamlining advice for single issues where appropriate. 

The controversial “safe harbour” requirements, which have made some financial advice overly comprehensive, will also be removed.  

Research shows unmet demand for advice is significant, with 80 per cent of Australians aged 45 to 54 unable to afford professional guidance. 

Younger Australians are also affected, with 74 per cent of those aged 18 to 34 reporting gaps in their financial advice needs. 

The government believes that without affordable alternatives, many turn to unregulated or risky sources, compounding their financial challenges.  

The government says strong consumer protections will be built into the new framework. 

APRA will develop supervision guidelines to prevent misconduct, and new advisers will face restrictions, such as being barred from charging ongoing fees or earning commissions. 

The government aims to maintain trust while increasing engagement, enabling funds to provide “nudges” to encourage members to act at critical life stages.  

Draft exposure legislation will be provided for public consultation soon. 

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