Under the reforms, licensees will be permitted to charge a direct fee for the advice provided by the new class of advises, enabling advice businesses, alongside super funds, banks, and insurance companies, to employ these advisers and offer their services for a fee.

However, the minister said strict limitations will be imposed on the scope of advice these operatives can provide. He also clarified the new class of adviser will be restricted to providing advice on products issued by “prudentially-regulated entities”.

SMSF Association CEO, Peter Burgess, said there is no argument reforms are needed to reduce the cost of advice and to open up new channels of professional advice to support the 15,500 existing financial advisers servicing the community’s financial advice needs.

“We have consistently argued that these new channels are urgently needed to enable more individuals to access quality advice to improve both their financial and mental well-being,” Burgess said.

“Meeting this need has become even more evident when the growing number of baby boomers entering retirement is considered – many of whom cannot currently afford to get advice.”

He continued that considering the government was focused on creating a new class of adviser to provide safe and simple advice, it remains a mystery as to why the role other professional advisers such as accountants could play was still being overlooked.

“It was our contention that the Quality of Advice Review neglected the significant role accountants can play in addressing the growing advice gap, and the government is perpetuating this oversight,” he said.

“By giving accountants a defined advice role, it will further support consumers to access the advice they need when they want it from their choice of trusted adviser.”

He said new educational pathways were needed to not only ensure the sustainability of the financial planning sector, but to ensure the future financial advice needs of all Australians could be met.

“The success of this model will depend on ensuring that the education requirements for the new class of adviser truly provides a pathway to becoming a financial adviser,” he said.

“We welcome the opportunity for all AFS licensees to employ the ‘new class’ of adviser and support more individuals on their pathway into a rewarding and fulfilling career.”

He continued that many consumers needed point-in-time advice, often driven by life events, so modernising the best interest duty provided certainty to the sector that they could meet this need by providing advice on a single topic or limited scope of advice.

“The professionalism that now characterised the advice sector was a credit to its practitioners, providing the foundation for the sector to now expand so that it could meet the advice needs of a growing number of Australians in an affordable way,” he added.

“The association looks forward to working with the government to ensure the right balance between opening up advice to more Australians is achieved without surrendering important consumer protections.”