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The Mortgage & Finance Association of Australia (MFAA) has submitted 16 recommendations for the 2025–26 federal budget.
The 2025–26 pre-budget submission highlighted four key priorities considered “critical” for the budget:
1. Competition in the home lending sector.
2. Continuing funding initiatives to combat scams, mitigate cyber security risks for small businesses, and support Australians in their transition to the digital economy.
3. Prioritising fit-for-purpose regulation and policy settings for the mortgage and finance broking sector.
4. Co-investing with the broking industry in environment sustainability and social impact initiatives.
In the submission, MFAA CEO Anja Pannek emphasised the crucial role that mortgage and finance brokers play in lending through providing access to credit and promoting choice in consumer and business finance.
“In addition to facilitating nearly 75 per cent of all home loans in Australia, mortgage and finance brokers also facilitate approximately 78 per cent of home loans under federal first home buyer schemes and facilitate at least 4 in 10 small business loans,” Pannek said.
“This highlights the mortgage and finance broking industry is not just systemically important to the Australian economy, but also instrumental in facilitating choice and competition in the lending sector.”
The 16 recommendations put forward by the MFAA include:
1. Simplify home buyer schemes: Streamline government-backed home buyer programs and partner with mortgage brokers to raise awareness.
2. Review APRA Settings: Reassess APRA’s prudential regulations, such as the serviceability buffer, to ensure they don’t create barriers for borrowers.
3. Streamline home loan discharges: Make the home loan discharge process quicker and more efficient.
4. Enhance Consumer Data Right: Continue expanding and improving the Consumer Data Right.
5. Promote mortgage broker use: Encourage first-time home buyers to consult mortgage brokers.
6. Support small business education: Work with industry to educate small businesses and continue investment in support organisations.
7. Digital ID consistency: Ensure consistent implementation of Digital IDs and expand their use cases.
8. Payroll tax consistency: Advocate a unified approach to state and territory payroll tax legislation.
9. Privacy Act updates: Ensure all privacy-related changes are reflected in the Regulatory Implementation Grid, with clear timelines for small business exemptions.
10. CSLR levies: Ensure levies for the Client Safeguard Levy Reserve are appropriate and purposeful.
11. Instant asset write-off: Make the instant asset write-off scheme permanent.
12. Update ASIC credit licensing guide: Revise ASIC’s regulatory guide for credit licensing, focusing on competence and training.
13. Financial Services Royal Commission Remediation: Continue implementing reforms from the Financial Services Royal Commission.
14. Small business ESG education: Invest in educating small businesses on environmental, social, and governance (ESG) principles.
15. Decarbonise residential property: Support brokers in driving the decarbonisation of Australian residential properties.
16. Financial literacy initiatives: Continue efforts to improve financial literacy across Australia, including funding the National Debt Helpline.
The federal budget is due to be released on 25 March 2025, although this could be pushed forward should an early election be called.
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