Industry reacts to Mulino's sweeping reforms

From the advice sector to super funds, reactions to the sweeping reforms announced by the minister for financial services Daniel Mulino have been broad.

Industry superannuation funds have welcomed financial advice reforms announced yesterday, which would create a New Class of Adviser and let funds deliver low-cost advice to members in-house.

Treasury said the new adviser regime would initially apply only to APRA-regulated superannuation and life insurance entities. The New Class of Advisers will be prohibited from receiving commissions, bonuses and volume-based payments, which Treasury said are features of sales-driven advice models.

Super Members Council (SMC) chief executive Misha Schubert said the reforms expand Australians' access to advice via their own super fund, helping members get the guidance they need, when they need it.

"Super members ask every day, 'do I have enough to retire on?' It's a simple question that they expect their fund to be able to answer. The challenge is making that available at scale," Schubert said.

"This announcement gives Australians access to simple, trusted intra-fund advice in retirement, delivered by their own super fund, to help them make better decisions and reduce the likelihood they are driven into the hands of risky schemes and questionable actors."

Financial Services Council (FSC) chief executive Blake Briggs, however, said the government must ensure a clear distinction between full professional advice, which tells a consumer what they should do in their personal circumstances, from information and guidance, which outlines what an individual can do.

"We look forward to working with the government on getting the details right," Briggs said.

"Australians' financial wellbeing will be enhanced by having more access to information from financial institutions where their circumstances and queries are simple, through to full financial advice from licensed professional advisors where they are looking for advice on what to do with their full financial affairs."

Rest general manager of public policy and advocacy Enrico Burgio said many members of the $113 billion super fund might find it hard to be able to get financial advice if it wasn't provided through super.

"The Delivering Better Financial Outcomes (DBFO) reforms, if passed, would bring us one step closer to making simple financial advice available to more Australians through their super fund," Burgio said.

"Combined with the introduction of the New Class of Adviser regime for super funds, these reforms will allow super funds to substantially expand the financial advice and guidance they can provide to members, including the type of advice offered."

Burgio added the ability to more deeply engage members at key decision points and life stages through personalised 'nudges' is imperative.

These reforms come at a time when 2.5 million Australians are set to retire over the next decade and look for personalised advice.

Australian Prudential Regulation Authority (APRA) data shows industry funds recorded net outflows of $15.8 billion in the four quarters to March 2026, as members increasingly shifted money to platforms, which offer greater choice in how super is invested.

HESTA chief executive said a members need the most guidance when they transition to retirement and the fund continues to advocate for a simpler and more modern super system, which includes allowing funds to transition members to retirement products suited to their circumstances.

"We believe a system that engages members early, through their own trusted fund, is central to preventing harm before it occurs," Blakey said.

"That's why we're also pleased to see a commitment to progress reforms that will support more Australians getting simple, safe and cost-effective financial advice. We look forward to engaging with government on this critical work."

AustralianSuper chief executive Paul Schroder said the proposed reforms would get the balance right on consumer protections and advice as Australians retire over the next decade.

"Members deserve the right help to make good financial decisions with one of their most important assets. People need more help and they need that help to be safe and reliable," Schroder said.

"We welcome minister Mulino's proposals to protect people's retirement savings and look forward to the legislation coming to Parliament."

Australian Retirement Trust chief executive Kathy Vincent added the reforms making advice more accessible should be legislated as soon as possible.

"Australians deserve access to retirement advice that is right for them," Vincent said.

"These changes will contribute to a more confident and dignified retirement for millions of Australians. We look forward to seeing the detail of the draft legislation so industry stakeholders can have confidence about the path forward that is in the interests of fund members."

Burgio highlighted it is important the reforms progress hand in hand alongside strengthening consumer protections and governance requirements across the system.

"Recent failures have caused significant financial harm to Australians and highlighted that existing consumer protections have not kept pace with evolving business models and sales practices, including harmful lead-generation models," Burgio added.

Meantime, the SMSF Association (SMSFA) said while it "broadly supports" the reforms, some measures would be easier to implement than others.

"While a number of reforms reflect what is generally considered best practice, such as requiring SMSFs to hold uniquely identifiable bank accounts, experience shows there can be practical challenges in implementation," the SMSFA said.

"It is therefore imperative that these issues are worked through methodically with the sector and other key stakeholders before legislation is drafted, to ensure the measures can operate as intended in practice."

SMSFA chief executive Peter Burgess added he was pleased the government listened to the sectors concerns and will not proceed with cooling-off periods for rollovers to SMSFs, advice fee caps or an opt-in/opt-out CSLR special levy model for SMSFs.

"These were all options that were previously on the table in the lead-up to [the] final package of reforms," Burgess said.

"While we understand the rationale for introducing mandatory SMSF trustee education for prospective SMSF trustees, we welcome the acknowledgement of the work the association is already undertaking in this area to support confident, informed SMSF trustees."