In last night’s budget the Federal Government announced a commitment to expanding Australia’s finance industry as part of the broad theme of wanting Australia to become a financial services global leader.
The Finance Sector Union has welcomed these announcements. In particular:
· The focus on lifting competition and increasing investment through the lowering of withholding tax;
· Promoting savings through the 50% cut in tax on interest bearing savings;
· Increasing our Superannuation pool of funds;
· The adoption of recommendations from the Johnson Report into making Australia a financial hub
FSU continues to advocate for an industry plan that targets growth of Australia’s finance sector across the region and the globe, enhancing competition, attracting business and developing employment. These announcements will help to improve our industry and expand employment opportunities for financial sector workers. They will also deliver better outcomes for customers through greater competition and less tax on savings.
However, there are still more reforms needed. We have to have a plan that involves more than just tax concessions. We must make sure that the Government looks to expanding skills and employment in the sector so that we are ready and able to tackle global competition. The proposed adoption of the Johnson Report findings into building Australia into a global financial services hub is a great start but there is more that we can do to improve skills and opportunities.
We think the Government is right to look at supporting growth in our finance industry. In return they should be prepared to regulate the industry in the best interests of the community it serves.
It is also incumbent on our banks and financial institutions to act in the interest of the community and provide meaningful products and services to support the Government’s initiative and not seek to simply increase their own bottom line.
Leon Carter, National Secretary, FSU
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