In the latest episode of The ifa Show, MLC Expand CEO Liz McCarthy and Shadforth Financial Group CEO Terry Dillon join host Keith Ford to discuss the transformative role of AI in financial advice and how AI tools are being implemented to drive efficiency.

With advice firms looking for greater automation of routine administrative tasks, AI is set to reshape the advice profession's approach to client service and business growth.

Tune in to hear:

• How MLC Expand and Shadforth are responding to the need for greater efficiency through AI tools.
• Why rigorous governance and privacy protocols to ensure data security and accuracy are so vital.
• The crucial role of AI in expanding client service capacity, improving financial literacy, and addressing the broader advice gap in the market.

In this crossover episode of The ifa Show, host Keith Ford is joined by The SMSF Adviser Show co-host Aaron Dunn to unpack the changes from the initial proposal to the current version released this week.

The discussion emphasises that while the major concerns of taxing unrealised gains and lack of indexation have been addressed, many technical details still need to be clarified through the legislative process and further consultation.

Listen as they discuss:

• Taxable earnings: Originally, the tax applied to all earnings, whether realised or not. The revised measure will only tax realised gains.
• Indexation: The $3 million threshold will be indexed against the consumer price index (CPI) in $150,000 increments, pegged to the transfer balance cap movement. The $10 million threshold will be indexed in $500,000 increments, also aligned with CPI.
• Tax rates: For balances above $3 million, an additional 15 per cent tax applies to earnings. For balances above $10 million, an additional 10 per cent tax applies to earnings.
• Start date: The effective start date has been moved to 1 July 2026, with the first assessments issued in FY2027–28.
• Liability: The tax liability remains with the individual, who can pay it directly or seek a release from their super fund. The ATO will calculate the tax.
• Consultation: There is optimism for constructive consultation on the implementation details, particularly regarding how realised earnings will be calculated for APRA funds and self-managed super funds, and the treatment of CGT discounts and pre-2026 asset gains.

Tune in to hear:

• The value of having the support of an established business, including leveraging shared resources, economies of scale, and established referral networks.
• How transitioning from an adviser to a business owner requires a significant mindset shift.
• Why nurturing "soft skills" like communication and client understanding in new advisers, alongside technical expertise, is vital.