Financial planners agree with the Federal Treasurer and hope to spend less time providing advice on taxation of superannuation benefits, according to a new survey.
Last May Mr Costello indicated financial advisers would no longer be needed for that task, saying proposed superannuation changes would make it easier for investors to do it themselves.
A June 2006 survey by Aviva reveals that advisers are not spooked by the suggested change. In fact, the online Newspoll survey of 170 advisers showed that they welcome the Budget proposals.
Aviva's chief executive Allan Griffiths said: "Respondents applauded the proposed Budget changes that will offer them more time to concentrate on really adding value for their clients by expert investment strategies. They see it means they will not have to waste resources on artificial strategies to minimise benefit taxes."
The survey revealed that advisers intend to focus on building strategic advice, with particular focus on developing investment plans to fund retirement (72%), building relationships (59%), further developing the wealth protection side of the business (54%) and concentrating on investment selection wealth creation (50%). (See table below)
The survey also found that platform attributes continue to be important to advisers in the post-Budget environment including efficient administration (98%), continuing education (94%), tax minimisation strategies (93%) and pricing (91%) as the top responses.
Allan said: "All in all advisers are feeling positive about the changes announced in the Budget and majority have the capacity to take on a large amount of new business over the next two years.
"For now it seems to be business as usual."
Overall, a total of 90% survey participants reported a "very" or "somewhat" positive response to the Budget proposals. A total of 5% said they were negative and a similar number were unsure.
Asked about their projected capacity for new business over the next two years, 75% replied they had a large capacity, with 24% saying a small capacity and only 1% saying they had no capacity.
The research was conducted by Aviva's customised consumer insights team.
Allan said: "The survey showed that advisers are well-placed to help Australians towards their future prosperity. They have the capacity and the experience and Aviva has the products to help boost the financial security of the nation."
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Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world's fifth-largest insurance group, the UK's largest insurance services provider (based on gross worldwide premiums at 31 December 2005), and one of the leading providers of life and pension products to Europe, with substantial positions in other markets around the world.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of A$82.3 billion (Ł35 billion) and assets under management of A$745 billion (Ł317 billion) at 31 December 2005.
- The information in this document reflects Aviva Australia Holdings Limited understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.
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Source: Aviva research, Consumer Insights 2006