At the core of the new regime is a recognition that the current regulatory framework has become too complex and expensive leaving many Australians unable to afford or access the advice they need. Some estimates put the cost of personal advice at over $5,000.

The government’s goal is to slash this cost by as much as 40% through simplified advice pathways.

The simple advice regime aims to create a middle ground between general and personal advice. Under current laws, personal advice, defined as advice that considers the personal circumstances of the client, carries a high compliance threshold, including obligations like the best interest duty, the provision of Statements of Advice, and extensive documentation.

In contrast, general advice offers no consideration of the customer’s specific circumstances, which limits its usefulness for consumers navigating complex insurance decisions.

The new model proposes a streamlined advice category — provisionally referred to as “simple advice” — that would allow for some consideration of the client’s personal circumstances without the full burden of personal advice regulation.

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