The government announced it was setting up the group to boost the advancement of financial capability across Australia.
The not for profit public company will distribute the money paid in community benefit payments that form part of the settlement agreements between the lenders and the Australian Securities and Investments Commissions (ASIC).
It will also receive the $10million committed by the government to developing women’s financial capability in the Federal Budget.
Minister for revenue and financial services, the Hon Kelly O’Dwyer MP, said, “Financial literacy and capability is critical for economic empowerment, including for Australian women and young and older Australians.
“This new body will be a game-changer, a lasting institution that will support consumers and build financial capability for all Australians no matter what their circumstances.”
The body will administer grants and improve capabilities amongst Australians of financial products and services. It is expected that this body will be the largest of its kind in Australia and seek deductible gift recipient status in order to enable it to receive tax-deductible donations from the public.
The new body is independent of government and will be overseen by a board chaired by Paul Clitheroe AM, one of Australia’s leading voices and advocates on financial literacy. He will be joined by Elaine Henry OAM and Air Commodore Robert Brown AM.
O’Dwyer added, “It will become Australia’s peak body in championing financial literacy and capability amongst Australians. It will use funds received as a result of corporate wrongdoing to educate and empower Australian consumers of financial products and advice.”
Where ASIC accepts Enforceable Undertakings in future, it may agree to further community benefit payments to be paid to the company.
