Financial Advice From Government – Ha!

Is it chutzpah or hubris that the Commonwealth Government, through ASIC, is offering financial advice to citizens.  Perhaps it is hallucinogenic drugs.

Fresh this morning, ASIC has directed citizens to its MoneySmart website to help people:

in organising your household budget, getting on top of debts or saving for something significant.

Kind of ironic that ASIC falls under the broader Treasury portfolio.  I wonder whether the budgeting app was tested by the budget group?

Here are ASIC’s 6 pieces of advice.  Make sure you are sitting when you read this.

  1. Review your finances
  2. Take control of your debts
  3. Create a savings buffer
  4. Maximise your super
  5. Buying a car in 2017?
  6. Seeking financial advice

And the corker – the government encouraging voluntary additional superannuation contributions also.  Breathtaking.

Addendum:

Hat tip to Dr DL who points out the conflict of interest in the Government (via ASIC) plugging Government bonds as an investment:

Bonds range from very safe (for example, Australian Government bonds) through to very risky (unlikely to repay your money). Its very important to know what you’re investing in, as not all bonds or fixed interest investments are the same.

(With the power to print money, it is next to impossible for the Australian government to default on its bonds.  That does not mean investors will “get their money back”.  Ask the Zimbabweans.)

A couple of other points to consider:

  • Does ASIC have an Australian Financial Services Licence allowing it to give general financial advice?
  • Does ASIC have a policy for the management of conflicts of interest, a conflicts of interest register and the phalanx of other registers and plans required of regular AFSL holders?

Where is the regulator?  Can ASIC as the regulator of AFSLs also regulate itself?

Clearly there is a culture problem that needs “cleansing”.  Where is the Chairman?  Is not a speech warranted?

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31 Responses to Financial Advice From Government – Ha!

  1. thefrolickingmole

    Maximise your super

    So we can steal it before you retire, plebs…

  2. struth

    How much better would my household budget be if I didn’t have to pay for these wankers telling me how to budget?

    The truly disappointing thing is their lack of self awareness.

    The thought that lowering my taxes so as not to pay for their condescending bullshit really has not entered their tiny public servant minds.
    And they insulate themselves from anyone who might suggest it to them.
    They are fleecing you and with this, just rubbing your nose in it.
    Or as the poms would say…
    havin’ a laugh.

  3. Siltstone

    Is it 1st of April already?

  4. PEB

    I think that we have to make allowances for them – they are staffed mostly by lawyers.

  5. Dr Fred Lenin.

    These people are highly quailfied to give financial advice ,look at the salaries and perks they get whilst employed by the government ,look at the super and pensions they get on retirement We should all be emulating them ,they certainly know how to look after number one . You notice I said “employed by the government ” not “working for the government ” , I know what goes on in their tiny selfish minds .

  6. Dr Fred Lenin.

    Spartacus just got the app ,on my way to financial heaven ,or the debtors prison ,anything for a laugh thats me ,will clinically dissect it when I get time ,thanks for the post .

  7. mundi

    This actually appeals to a lot of the plebs, especially public servants and welfare leeches (so 50% of the population then?)

    Never underestimate the huge portion of the population that live week to week never accumulating more money then the next welfare/pay cheque. 63% of adults in Australia could not raise $500 if asked for it within 24 hours.

  8. Sydney Boy

    The girlfriend is a psychologist and deals with a lot of clients under Medicare (were you aware that you can get up to 10 taxpayer-funded psychologist appointments per FY?); and she says that without a doubt, 50% of the Medicare clients are financially illiterate. When have discussed before that what’s if instead of getting 10 taxpayer-funded psychologist appointments, they could convert some of those into financial planner appointments?

  9. Linden

    No, January is in the ‘silly season’ is it not?

  10. Linden

    Probably why those instant loans parasites keep running those idiotic adds all day long.

  11. Myrddin Seren

    50% of the Medicare clients are financially illiterate.

    We are probably only one GFC and two elections away from where the welfare industry will be demanding the government move from an advice model to a financial control model – accommodation, health, schooling, childcare, weekly rations of healthy food – everything government controlled.. Uniforms for everyone because equality – no clothing injustice etc etc.

    So far down that Road to Serfdom…..

  12. Scavenger

    What is all that stuff got to do with ASIC? Are they just creating work (or an excuse for more funding) for themselves. My accountant gets a chuckle when he does my books, the annual ASIC fee gets entered as “money for nothing”.

  13. Terry

    “the government encouraging voluntary additional superannuation contributions”

    I wonder what would happen to a private business that encouraged investment in a particular savings vehicle so that could be further pillaged by said business for its own financial gain.

    The Public Service (Local, State & Federal) need an across the board remuneration freeze until the net government debt is zero and the budget is returned to surplus.

    Far too many snouts in the trough. Retards retarding the economy.

  14. Jo Smyth

    Buy a safe from Bunnings and IF you have any spare money, hide it before the Government comes after it.

  15. Richard

    Before the October deadline for Income Tax filing I helped a Scandinavian recent arrival complete his tax return. He’d been working in Australia for 6mths and had paid no tax (overseas contract).

    Our tax year overlapped his home country but I showed him the relevant sections for filing and the calculations required. Before submitting his form he spoke with the ATO “help” desk. They incorrectly told him his home tax withheld should be included as tax already paid. He did so and filed.

    Despite having never paid tax in Australian the ATO calculated he was owed ~$20k, which he received into his bank account a few days after filing.

    A couple of weeks later the ATO called to start recovery of the money. Luckily for them he’s honest, I’m sure many others would’ve booked a flight home.

    The incompetence of govt and their deptaments never fails to surprise (I’ve plenty more stories).

  16. Fred

    ASIC missed the big way of improving your household finances – just increase your income. And if its not enough, then increase it some more.

    If you can’t afford everything that you want, then you obviously have a revenue problem.

  17. Diogenes

    When I had my contracting business in the 90’s it gave me great pleasure to address all mail to the Asylum for Shysters and Incompetent Criminals

  18. King Koala

    Maximise your super

    Fuck you, you boomer arseholes. You cunts have already ruined this country and I am not going to put more of my money into super so you greedy bastards can steal it. In 30 years I expect super to not exist so why throw my money away?

  19. King Koala II

    Fuck you, you boomer arseholes. You cunts have already ruined this country and I am not going to put more of my money into super so you greedy bastards can steal it. In 30 years I expect super to not exist so why throw my money away?

  20. King Koala

    Maximise your super

    Screw you, you boomer a***holes. You c*nts have already ruined this country and I am not going to put more of my money into super so you greedy bast*rds can steal it. In 30 years I expect super to not exist so why throw my money away?

  21. King Koala

    It seems the Cat censors naughty words. Why? I doubt 12 year olds browse this site.

  22. dan

    When have discussed before that what’s if instead of getting 10 taxpayer-funded psychologist appointments, they could convert some of those into financial planner appointments?

    Buggered if I understand why people go to financial planners anyway. They would benefit more from parents who taught them to spent less than they earned.

    Anyway I think a key to financial success is to have your employer pay for the travel expenses of your partner’s business. Ideally their budget will run to a chauffeur to take you from, say, Brisbane to the Gold Coast.

  23. Richard H

    Since you ask:

    Does ASIC have an Australian Financial Services Licence allowing it to give general financial advice? – No, but it doesn’t have to. An AFSL is required only for an entity that “carries on a financial services business”. Offering some gratuitous advice isn’t carrying on a business of providing that advice.

    Does ASIC have a policy for the management of conflicts of interest, a conflicts of interest register and the phalanx of other registers and plans required of regular AFSL holders? – Yes, it does. Although not identical to those required by licensees, they are many and detailed.

    Any other questions?

  24. dan

    The page in question isn’t offering financial advice, it is merely defining various financial instruments.

  25. Stackja

    Dart board, dice or ouija board.

  26. iain russell

    Best financial advice ever – get a gumment ‘job’. End of advice.

  27. Crossie

    What is all that stuff got to do with ASIC? Are they just creating work (or an excuse for more funding)

    Pity Malcolm and Scott Morrison don’t have access to that web page.

  28. Damienski

    I doubt 12 year olds browse this site.

    It seems at least one does.

  29. King Koala

    It seems at least one does

    Then its past your bedtime and you should get your mummy to tuck you in.

  30. rickw

    Financial advice from Government? Why do they recommend items one to three when they are incapable of doing the same themselves?

  31. Louis Hissink

    Gary North refers to a recent essay by Angelo Codevilla in Claremont Review of Books, “The Rise of Political Correctness“, pdf download, and North’s summary here.

    The world’s ruling elites consider themselves to be far more intelligent and wiser than we the unwashed rubes and rednecks, so they need to help us make decisions, i.e. ASIC’s effort that this post examines. These people have been slowly changing the system for some 100 years, and while a small number of us might react to their blatant stupidities, the rest don’t and, more tragically, are also intellectually incapable of recognising the cultural-marxist BS for what it is. As North points out, PC has also backfired on them as well, (read the PDF), so we are all going to be living in interesting times.

    And the IPA Review wonders if Trump can save America – nope – in order to do that one has to purge the cultural-marxists, and then also have a working alternative ready to go; we don’t and can’t.

    And it might be worth thinking about the role authority has in modifying human behaviour. Authority? People who base their actions and activities on the guidance of authority, are simply people who can’t, or is it won’t, decide for themselves what action needs to be done. The hallmark of the Lefty is the inability to take personal responsibility for action, hence the tendency for consensus, and collectivism.

    During Roman times people were pagans and had their own mini-authorities. The arrival of totalitarian religions, Christianity and Islam,(and other secular faiths) however changed things drastically. Totalitarians don’t brook competing authorities hence the missionary urge to convert unbelievers. And of course the implementation of a myriad of rules and regulations set up under the authority of whatever ultimate source one cares about. So offering guidance on how to budget one’s homely economy is standard operating procedure for the totalitarians.

    Given the message of Christ, and the focus on individuality in complete contrast to socialism (and Islam is a socialist system) and collectivism, one wonders how committed Christians could possibly support socialist policies. But then they all share a common goal, utopia, either in the here and now, or in the afterlife, so the existence Christian socialists isn’t at all contradictory; it’s just a matter of timing.

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