The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP this evening launched Austrade's 2009 Benchmark Report and the 2009 Australian Financial Markets Association (AFMA) Report.
"These reports underline the great advantages that Australia's financial services sector enjoys," Mr Bowen said.
"While there is still a lot to work through, in terms of the fallout from the global economic recession, we can build on what is a solid policy platform.
"I look forward to shortly receiving the report from Mark Johnson and the Australian Financial Centre Forum that will examine what further impediments there may be to Australia becoming a financial services hub for the Asia Pacific."
Austrade and AFMA's reports give a snapshot of the health of the Australian financial sector. At A$1.2 trillion, Australia's total contestable investment fund assets pool is the fourth largest in the world and since 1994 this sector has experienced a compound annual growth rate of 10 per cent.
"These reports are critical industry tools for foreign investors hoping to learn about Australia's financial sector, and for exporters of financial services wanting to demonstrate the strength and stability of Australia's economy, the liquidity of our markets, our skilled workforce and our enviably high quality of life."
In working towards the goal of establishing Australia as a financial services hub in our region, the Rudd Government has enacted the following reforms:
- Cutting the withholding tax on certain foreign distributions from managed investment trusts would be cut from 30 per cent to a final rate of 7.5 per cent;
- Establishing the Australian Financial Centre Forum, which later this year will report on further ways to improve the competitiveness of our financial system and the clarity of taxation rules.
- Changing the attribution rules and the deemed capital account treatment of the sale of shares, units and property from Managed Investment Trusts – based on advice of the Board of Taxation
- Repealing and replacing the Foreign Investment Fund provisions with a narrowly-defined anti-avoidance rule. The Controlled Foreign Company rules will also be modernised and re-written.
- Finally, the Government took a significant step in August when it announced the transfer of supervision of financial markets from the ASX to ASIC, the corporate regulator.
7 October 2009