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18-243MR The Hon Kelly O’Dwyer MP launches the 2018 National Financial Capability Strategy
The Minister for Revenue and Financial Services, The Hon. Kelly O’Dwyer MP, today launched the 2018 National Financial Capability Strategy at an event at Parliament House in Canberra.
Speaking at the event, Minister O’Dwyer highlighted the Australian Government’s ongoing commitment to supporting Australians to be in control of their financial lives. ‘We want all Australians to be in control of their financial lives. The Strategy guides action across the government, business, community, education and research sectors to support enhanced financial capabilities in individuals, families and communities’.
The Strategy aims to help Australians better control their financial lives by improving their skills in:
- managing money day to day;
- making informed decisions, and
- planning for the future.
A significant number of Australians struggle to manage their money. In fact, more than 1 in 3 people find dealing with money stressful and overwhelming[i].
Strengthening financial capability takes time, but the benefits are significant. By investing in boosting these skills and behaviours now we will make a difference to so many later.
Modelling commissioned by ASIC indicated that if financial capability levels for all Australians were lifted marginally above current levels, the present-day benefit of improved money behaviour over the next 30 years would be an increase to consumer wealth and consumption by $212 billion (2017 dollars)[ii].
ASIC Chair James Shipton emphasised the importance of programs delivered under the National Strategy. ‘The 2018 National Financial Capability Program drives programs and initiatives that make a difference in people’s lives. We want more Australians to access information and guidance they can trust to ensure everyone can make informed decisions.
‘ASIC is committed to financial inclusion and better outcomes for all Australians. People are at the heart of the financial system and at the centre of this National Strategy. The financial sector as a financial community should be engaging in practices that promote fair consumer outcomes. In particular, we need to continue to encourage women to be more confident with money, young people to find the information they need when they need it, and support Indigenous Australians to access appropriate financial products and services. We want to see more Australians in control of their financial lives and I look forward to working collaboratively under the 2018 National Strategy to advance this important work’, Mr Shipton said.
Go to https://financialcapability.gov.au/ for more information on the strategy.
ASIC is the leading Government agency for financial capability, driving initiatives to help Australians be in control of their financial lives. This includes leading and coordinating the National Financial Capability Strategy, with support from the Australian Government Financial Literacy Board.
The 2018 National Financial Capability Strategy was formed from a consultation process that included over 145 submissions from stakeholders and replaces the 2014-2017 National Financial Literacy Strategy.
[i] Australian Financial Attitudes and Behaviour Tracker, March 2017
[ii] Economic modelling was carried out by ASIC, using a similar approach as that used by the United Kingdom’s Money Advice Service in 2016. The modelling simulated consumer behaviour for adult Australians over a 30-year period and made assumptions and estimates of people’s incomes and spending patterns.