Mortgage brokers could be facing a threat on ban commissions if the federal government pushes its campaign against kickbacks.

Financial Services Minister Chris Bowen said including mortgage brokers on a ban of kickbacks may be subjected for review since brokers are selling loans and not investments.

“They are covered by a different regime but we will consider that as part of our national credit reforms, and phase two of that is coming,” he said.

Minister Bowen declared yesterday that financial planners are forbidden to receive kickbacks, volume discounts, and commissions from its clients and investors, and will only charge its clients for advice rather than recommend services which appeared to be free. Mr. Bowen also explained that a ban on commission will prevent conflicts of interests that threaten advice quality and avoidance of product recommendations on its products.

“If we are going to restore trust and confidence in financial advice in Australia, it starts with giving investors greater control over the advice they receive and how they pay for it.”

Mr. Bowen refuted statements that financial advice would be made tax deductable.

However, opposition leaders scrutinized the federal government, stating that its campaign is an attack against small business.

Opposition leader Tony Abbot told media yesterday that he is thoroughly against the ban on payments to financial advisers.

“If the commissions are upfront and transparent I don’t necessarily have a problem with that,” he said. “It looks to me like another attempt by the Labor Party to have a go at small business,” Mr. Abbot said.

Joe Hockey, an opposition treasury spokesperson, reasoned out that low-income earners could not afford financial advice if it has upfront fees.

Meanwhile, coalition financial services spokesperson Luke Hartsuyker told media that he was in “furious agreement” with the proposal, particularly with the ban on unending commissions.

“We are in total agreement with that. Where the commission is rolling along allegedly for advice and no advice is actually being given, we can’t support that.”

“But we do support a system where someone can come to an arrangement to receive advice without having to pay fees up front. Without it many low-income earners may not avail themselves of advice at all.”