The Federal Government has offered its support for the export of Australian financial services but without, at the same time, offering any changes to its current taxation structures.
The Parliamentary Secretary to the Treasurer, Chris Pearce, has used an address in Melbourne to say that the export of financial services, particularly to the Asia-Pacific region, represents an obvious growth opportunity for Australia, but he stopped short of suggesting that the Government would amend the current tax regime, particularly with respect to withholding tax.
Pearce’s failure to mention the tax issue in his speech seems likely to disappoint the Investment and Financial Services Association, which has argued that a cut in Australia’s withholding tax rate is necessary to align the nation with its global competitors.
Pearce said in his Melbourne address that Australia had the necessary market infrastructure, IT expertise, systems, knowledge management and industry expertise to make it a natural first choice for the export of funds management in the region.
“The potential export of our financial services sector expertise is just one of the ways Australia can challenge and compete in the international marketplace,” he said.