Australia and US in industry co-op talks

Australia and the United States of America will seek to further integrate their respective financial services sectors through a series of scheduled talks between the Federal Treasurer Peter Costello and US Treasury Secretary John W. Snow.

The pair will work towards better aligning the securities infrastructure of the two countries, with specific reference to cross-border access by international investment schemes and foreign markets and other related prudential matters.

Costello says there is increasing investment by Australian managed funds in the North American economy.

Direct and portfolio equity investment by Australian companies in the United States was estimated to total US$118 billion as at the end of 2003.

At the same time, investment by the United States in Australia stood at US$105 billion, with equity investment in banks and other financial sector institutions totalling US$17 billion as at June 30, 2003.

Earlier this month, Costello announced a partnership with New Zealand Minister of Commerce Margaret Wilson to commission a new study to determine relevant issues of competition and consumer protection as part of their ongoing plans to establish a single economic market.

Meanwhile in Federal Parliament, the government pushed the New International Tax Arrangements (Managed Funds and Other Measures) Bill 2004 through the House of Representatives late last week.

“The Bill focuses on making the Australian managed fund industry more attractive to foreign clients,” Assistant Treasurer and Minister for Revenue Mal Brough says.

According to Brough, the Bill is the next step in the Treasurer’s 2003 budget statement to review the Australian tax system and to adapt it to an increasingly global business environment.

He says this follows the signing of a new tax treaty with the United Kingdom last year that provided significant benefits for Australian-based multinationals operating in the UK.