The power of data-driven advocacy
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GOOD ADVOCACY is based on good research – but what can turn good advocacy into great advocacy?
The MFAA understands that the key ingredient in building advocates and influencing policymakers (not to mention mortgage industry stakeholders and the public at large) is solid data.
“We know that the foundation of effective advocacy is hard data. It strengthens our advocacy activity by providing evidence-based facts for why change is necessary,” says MFAA CEO Anja Pannek.
The Mortgage and Finance Association of Australia (MFAA) is the leading professional association for the mortgage and finance broking industry, with over 15,000 members. MFAA members include mortgage and finance brokers, aggregators, lenders, mortgage managers, mortgage insurers and other suppliers to the mortgage broking industry. Our purpose is to empower our members to prosper and thrive, ensuring Australians benefit from competition and choice.
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ANJA PANNEK,
MFAA
Without solid data, all you have is an opinion. It might be an informed opinion – from a key player with industry knowledge even – but when you boil it right down, a position backed by data will always be more convincing than the loudest person in the room, or the person with the most interesting anecdote.
“[Hard data] means our discussions with policymakers, regulators and industry stakeholders are more impactful,” says Pannek. “Data ensures we advocate on an informed basis.”
Crucially, using empirical data when advocating for better policy means that the impact of any regulations being discussed can be quantified – and the MFAA is at the top of its game when it comes to showing exactly how much that impact would be.
ANJA PANNEK, MFAA
Efforts to draw attention to and change the relevant contractor provisions in the NSW Payroll Tax Act are a case in point. Under these provisions, businesses using contractors may be subject to payroll tax.
Due to poor drafting of the relevant contractor provisions, which were originally intended to capture anti-avoidance activity, contracts between brokers and aggregators have been interpreted as falling within the payroll tax net, meaning that commissions paid by lenders to brokers through aggregators are treated as wages to brokers and subject to payroll tax.
The MFAA was a key part of efforts to persuade policymakers of the need for a parliamentary inquiry to review the Act’s contractor provisions, which have long been seen as a negative for the industry.
The peak association did this though a two-pronged approach – demonstrating the potential disproportionate pass-through impact of payroll tax on mortgage broker businesses in NSW and its potential social effects on the industry as a whole. In economic terms, the MFAA needed to illustrate both the micro and macro impacts of the law.
After consulting widely with aggregator groups, payroll tax experts and Council of Small Business Organisations of Australia members, the MFAA produced a model that showed the exact impact of the payroll tax on a typical self-employed broker.
“Our modelling demonstrates that a self-employed broker, with an average business revenue of $182,000 before wages, rent and expenses, would face an additional $68,000 in payroll tax liabilities,” says Pannek.
That means an additional tax equivalent to almost 40% of business revenue – a level that clearly demonstrates to policymakers how mortgage brokers’ businesses would suffer.
“These small business owners are uniquely disadvantaged, as they lack the ability to absorb or pass on these substantial costs, placing them under significant financial strain. Brokers could be forced to exit the industry, diminishing competition and consolidating market power among major banks,” says Pannek.
Repercussions would also be felt far beyond brokers, as anyone with a housing loan would have to swallow the secondary effects of more brokers closing shop.
The MFAA showed that the downstream macro effects of reduced competition on the wider market would amount to NSW home loan borrowers paying up to $100,000 more over the life of their loans. As payroll tax laws are largely harmonised across the country, the NSW policy could also set precedents for other states with industries that rely on contractor arrangements.
A parliamentary inquiry into the payroll tax was launched in November, with the MFAA submission not only one of the most substantive but also the culmination of advocacy efforts stretching back years.
“The launch of the parliamentary inquiry validates our data-driven advocacy. By demonstrating the broader economic effects, we successfully positioned the issue as one that requires urgent policy review,” says Pannek.
The Payroll Tax Inquiry is just one example of how the MFAA uses robust data to drive positive change for mortgage brokers. Another example of where MFAA research has contributed to positive outcomes for the industry is the cancellation of the 2022 Review into Broker Remuneration.
Pannek says the MFAA approach is about having all key participants at the table – a whole-of-industry approach. “[This] means we don’t just focus on the problem; we bring constructive proposed solutions to the table for brokers and their clients,” she says.
Engagement with consumer advocacy groups, the media and the public is all about driving home the wider social and economic value that brokers provide to the community – including their support for financial literacy and accessibility to credit.
For example, the MFAA’s recently released Value of Mortgage and Finance Broking 2025 report shows that mortgage brokers contribute $4.1 billion in economic activity to the Australian economy, and the sector supports 37,349 jobs.
“These figures show the indispensable role brokers play in helping Australians secure loans,” says Pannek. “The $4.1 billion contribution to the Australian economy further demonstrates that brokers are not just intermediaries but critical drivers of economic growth, employment and financial stability.”
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“[Hard data] means our discussions with policymakers, regulators and industry stakeholders are more impactful. Data ensures we advocate on an informed basis”
“When dealing with all sides of government, our aim is to build awareness of the importance of our industry to the Australian economy and to highlight the competition brokers bring to the lending landscape”
The Mortgage & Finance Association of Australia (MFAA) champions the mortgage industry by turning real-world data into an important advocacy tool, providing key insights that influence policymakers and other stakeholders to drive meaningful change
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Busy policymakers are rarely experts in every subsector of the economy and need help in understanding why change is needed – at the same time, they are accountable to various parties and must frequently justify their actions with reliable data.
“[Data] helps policymakers understand industry dynamics,” says Pannek. “Policy positions backed by data influence policymakers and help demonstrate the real-world consequences of regulatory changes.”
The MFAA also needs to advocate on issues to a wider audience than policymakers, and many of these groups have differing interests. They include regulators, federal and state governments and the opposition, consumer advocacy groups, aggregators and lenders, the public and the media.
“Each stakeholder requires a tailored approach,” says Pannek.
The MFAA engages directly with regulators, the government and other stakeholders, including the Treasury, ASIC and AFCA, to shape policy through both regular structured meetings and less formal phone calls for ad hoc issues and observations. The MFAA also meets regularly with politicians at both the state and federal level.
“When dealing with all sides of government, our aim is to build awareness of the importance of our industry to the Australian economy and to highlight the competition brokers bring to the lending landscape – for the benefit of consumers and business owners,” says Pannek.
Submissions require technical, data-driven insights that focus on the impacts of policymaking on industry.
“We also bring attention to housing affordability and other key issues affecting the industry, such as cybersecurity, the Consumer Data Right and the Compensation Scheme of Last Resort.”
Engagement with lenders and aggregators focuses on collaboration, as well as understanding the commercial and operational impacts – both positive and unintended – of policy changes.
20 February
Significant engagement by MFAA in push for NSW payroll tax review
If there is one thing a relentless focus on data teaches you, it’s to take nothing for granted, especially in finance. Many of the economic factors that influence the playing field for mortgage brokers are what engineers call ‘nondeterministic’ – comprising complex movements that are near impossible to control or predict. That makes useful data all the more difficult to gather but also much more valuable than if the process was limited to simple bean counting.
The MFAA’s flagship Industry Intelligence Service (IIS) report and its newer Member Sentiment Survey (MSS) are key tools that help the organisation stay ahead of the always-changing data curve. While both capture changes over time, think of the IIS as the quantitative older sibling and the MSS as the qualitative younger one – more of a snapshot of broker perspectives and how their clients are feeling in the current market.
“The Member Sentiment Survey is an essential tool for identifying real-time insights into emerging challenges,” says Pannek. “Over time, [it] has evolved to capture aspects of brokers’ experiences, concerns and operational pressures.”
The 2025 iteration – the fourth since July 2023 – has been updated to reflect changes in the economy. While previous years have identified barriers to refinancing and mortgage stress, recent results reveal that while the cost of living continues to affect borrowers, green shoots are emerging because of the central role brokers have played in supporting borrowers through the heightened rate environment.
“By continuously refining our questions, we ensure the data collected reflects the real issues affecting our members and their clients,” says Pannek.
The MFAA is always looking for ways to expand its data footprint. Its Value of Mortgage and Finance Broking report is one such effort to show how the industry and the role of a broker have evolved to provide more value than ever before. But sometimes the nondeterministic factor is too high, even for the MFAA – collecting data is just too tough given the nebulousness of the issue involved. What happens then?
“We look to conduct member research and roundtables,” says Pannek.
That was the case when the MFAA wanted to understand how artificial intelligence was impacting a broker’s role – an important but essentially impossible-to-quantify issue. In such situations, the MFAA conducts member roundtables, often nationwide, and publishes white papers and research papers that illustrate the range of viewpoints gathered and serve as a starting point for further discussion.
“Proactively seeking out the voices of our members through research will remain core to how we bolster our advocacy efforts,” says Pannek. “We want to ensure brokers remain at the forefront of the lending market in Australia, driving competition, innovation and positive consumer and business owner outcomes.”
Deep dives into policy, a continuously moving feast of data and a rotating door of stakeholders with varying interests, along with efforts to determine the impact of hard-to-quantify issues such as AI, might sound like very dry exercises to many. But as long as the art of persuasion remains based on the real-world effects of whatever policy or factor is under discussion, advocating on an informed basis will remain the most effective approach.
So, mortgage and finance brokers, consider the MFAA the next time you close a deal, get a healthy commission or save a client some money – you may just have the MFAA and its treasure trove of data to thank for moving the dial in your favour.
A masterclass in data-backed advocacy
Different strokes for different folks
Staying ahead of the curve
Published 07 Apr 2025
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Copyright © 2025 KM Business Information Australia Pty Ltd
RSS
Sitemap
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Firms
Advertising
Authors
E-newsletter
Contact Us
Contact Us
Australian Broker Talk
Events
White papers
Webinar
Australian Broker Talk
Resources
TV
Sector Focus
Power Panel
Independent Feature
Executive Team Profile
Exclusive Leader Profile
Business Update
Business Focus
Big Deal
Premium Content
Technology
Reverse Mortgages
Investment Loans
Specialist Lending
SME
Commercial
Specialty
Best In Mortgage
News
News
Copyright © 2025 KM Business Information Australia Pty Ltd
RSS
Sitemap
About us
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People
Firms
2023
Correspondence to Revenue NSW and NSW Premier, Treasurer and Minister for Small Business (Labor); letter to NSW opposition ministers
6 March
Media release – MFAA launches NSW payroll tax campaign
Meeting with Revenue NSW
23 March
Media release – MFAA secures stop action from Revenue NSW
27 March
Letters to NSW Finance Minister the Hon. Courtney Houssos and NSW Small Business Minister the Hon. Steve Kamper
1 May
Letters to Revenue NSW and NSW Finance Minister the Hon. Courtney Houssos
12 May
Letter to and meeting with NSW Finance Minister the Hon. Courtney Houssos
26 July
Meeting with NSW Shadow Treasurer the Hon. Damian Tudehope
26 October
MFAA (federal) pre-budget submission calls for payroll tax reform
29 January
2024
Meeting with NSW Finance Minister the Hon. Courtney Houssos
31 January
Media release – Payroll tax ruling highlights legislation is flawed
15 April
Letter to Revenue NSW; letter to NSW Finance Minister the Hon. Courtney Houssos
6 May
Joint MFAA, COSBOA and CAFBA letter to NSW Government
24 July
MFAA media release – Associations join forces against payroll tax
8 October
MFAA media release – NSW Government must change payroll tax law
6 November
Meeting with NSW Opposition Leader the Hon Mark Speakman and NSW Shadow Treasurer the Hon Damien Tudehope
11 November
NSW Portfolio Committee 1 (Premier and Finance) launches inquiry into payroll tax legislation
26 November
MFAA lodges submission to NSW Payroll Tax Inquiry
7 February
2025
Source: MFAA
in economic activity generated in Australia in FY23
$4.1bn
Economic contribution of mortgage and finance broking industry
Source: MFAA 2025 Value of Mortgage and Finance Broking report
in direct value added and $800m in indirect value added
$3.3bn
direct and indirect jobs supported through broking activity
37,349
in mortgage broker sector correlated with reduced mortgage interest rates for borrowers
Growth
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2024