Australian Financial Services Industry to benefit from changes and reforms 18 May 2010 The Australian Financial Services Industry is expected to benefit from changes and reforms which have just been announced as part of the Government's Financial Year 2011 budget and the government's response to the 'Australia as a Financial Centre' report. The Australian Assistant Treasurer, Senator Nick Sherry, said that the changes will further the development of Australia as a leading regional financial centre and that banking competition in Australia will be given an extra boost by allowing non-major banks to access cheaper funding. Senator Sherry said that these measures are a direct response to recommendations made in Australia’s Future Taxation Review (The Henry Review) and the Australian Financial Centre Forum (The Johnson Report). The government’s response to the ‘Australia as a Financial Centre’ report provides in-principle or direct support for nearly all of the Forum’s 19 recommendations, including: - the introduction of an Investment Manager Regime
- the establishment of an online regulatory gateway
- the development of an Asia Region Funds Passport.
Senator Sherry also said that the Government will phase down the Interest Withholding Tax (IWT) incurred by local subsidiaries and branches when they pay interest on borrowings from their overseas parents. More information |