CPA Australia backs Productivity Commission call to rethink occupation entry requirements

• Report highlights disproportionate entry requirements for financial advisers
• New tier for low-risk registered company auditor activities a positive move

Australia’s largest accounting body, CPA Australia, has welcomed the Productivity Commission’s acknowledgement that entry requirements for financial advisers are disproportionate to the level of risk, which is contributing to the sharp decline in the number of advisers and limiting the public’s access to affordable advice.

The number of financial advisers listed on the Financial Adviser Register has almost halved in six years, down from 26,500 in 2019 to just 15,300 as of July 2025.

CPA Australia Chief Executive Officer, Chris Freeland AM, says the Commission’s draft recommendation to remove excessive occupational entry regulations that offer limited benefits could be an encouraging first step to achieve reforms for financial advisers.

“We’re pleased that the Productivity Commission has acknowledged our calls for an overhaul of the entry requirements for financial advisers, which is ultimately having a detrimental effect on the public’s ability to seek professional financial advice at a time when they need it most, such as nearing retirement,” said Mr Freeland.

“The cumulative effect of the regulatory burden imposed on the profession in recent years has demoralised advisers to the point where many are now walking away from businesses they grew from the ground up, while fewer new professionals are entering it to fill the gap because of the current entry requirements. 

“Government needs to work constructively with the profession to understand these issues and begin to address them before the number of financial advisers reaches a critical level. The Productivity Commission acknowledging that entry requirements are disproportionate to the level of risk is a positive step in the right direction.”

CPA Australia also welcomes the Productivity Commission’s recommendation to revise requirements for Registered Company Auditors (RCAs) by introducing a tier of licensing for lower-risk assurance activities.

“The entry requirements for RCAs are highly restrictive, which is necessary to ensure the appropriate level of expertise and regulatory oversight for the audit of highly complex entities such as listed companies or multinational enterprises,” said Mr Freeland. 

“However, the current entry requirements do not adequately differentiate between various audit risks, leading to unnecessary barriers and costs for lower-risk audit engagements. This risks undermining the pipeline of future auditors at a time when demand for independent assurance is growing, particularly in emerging areas like sustainability reporting.

“The current regulatory demands, while intended to maintain high audit quality for more complex entities, disproportionately impact small accounting firms and sole practitioners, making becoming an RCA increasingly difficult. The recommendation to introduce a new tier of licensing for lower-risk assurance activities is practical and sensible.”

CPA Australia is also encouraged by the Productivity Commission’s recommendation to provide targeted incentives to lift work-related training rates in SMEs, but urges the government not to overlook the need to support small business owners in upskilling, especially when it comes to new technologies such as artificial intelligence. 
 

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