$30m co-funding will meet tepid demand for financial counsellors – ICA

This should grant 9,000 more Australians access to financial counselling.

The Insurance Council of Australia (ICA) said that the insurance sector, in collaboration with other financial services sectors, will contribute to a $30m co-funding initiative. This initiative aims to address the unmet demand for financial counsellors. 

Under the three-year Industry Funding Model for Financial Counsellors, it is anticipated that an additional 9,000 Australians will have access to face-to-face financial counselling. 

This initiative will also enable the National Debt Helpline to manage an extra 17,000 calls annually. 

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The funding model is a response to recommendations made by Louise Sylvan AM in her 2019 review of financial counselling, which followed the Hayne Royal Commission in 2017.

The recommendation for increased industry support for financial counselling arose due to extended waiting lists, leading to some Australians being turned away despite their need for the service. 

The Australian Government will fund an independent body responsible for decisions regarding funding allocations and prioritisation. 

This body will be coordinated through Financial Counselling Australia and is scheduled to be established in early 2024.