Govt favours savings measures

Tonight’s Federal Budget may contain the announcement of tax measures designed to encourage saving.

The Minister for Financial Services, Chris Bowen, has indicated that such measures remain on the Government’s agenda and yesterday made reference to the recommendations of the independent tax report.

Discussing the Government’s intentions, Bowen said it had indicated it was interested in boosting long-term national savings.

"We are examining some of the recommendations of the independent tax report and we'll be making further announcements in due course,” he said. “No doubt there'll be various commentary about the impacts that that might have when those announcements are made.”

Bowen also referenced the Government’s continuing commitment to making Australia a financial services hub for Asia and, in particular, the findings of the Johnson Report.

“We'll be responding to the Johnson Report in the not-too-distant future and we'll be laying out policy in that respect,” he said.

“Financial services is important for growing the future of the nation, and our superannuation changes, which would add half a trillion dollars to our funds under management over the next 25 years, are important in ensuring that we have those skills as a financial services centre in and for Asia,” Bowen said.