Reform to continue

Peter Dutton

Both the Government and the Federal Opposition have used a pre-election industry symposium to signal that reforms to the Australian financial services environment will continue irrespective of which party gains government.

The Assistant Treasurer, Peter Dutton, is understood to have told the symposium hosted by the Investment and Financial Services Association (IFSA) and PricewaterhouseCoopers that the Government would continue to look at ways of removing barriers and supporting further growth in the sector.

Dutton is understood to have indicated that the Government will look to address industry concerns relating to the takeover provisions in Chapter 6 of the Corporations Act, which are regarded as restricting financial returns to investors in managed funds.

As well, he is understood to have told the symposium that the new Australia-Japan tax treaty will limit, on a reciprocal basis, the withholding tax rate on certain distributions from Real Estate Investment Trusts to 15 per cent.

IFSA is now expected to seek similar, reciprocal outcomes in future treaty negotiations, including the pending negotiations with the Netherlands and Germany.

For his part, the Opposition spokesman on Superannuation and Intergenerational Finance, Banking and Financial Services, Senator Nick Sherry, indicated that the Australian Labor Party was broadly supportive of proposals to assist in the export of Australian funds management services.