The decision by Australia's newly appointed Prime Minister Julia Gillard to hold off calling an immediate election and instead opening negotiations with the country's mining sector over its resources super profits tax (RSPT) is a step in the right direction, a number of industry associations have said.
The Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos said Gillard's decision to wait a few months before calling an election will enable the financial services industry to continue its focus on the government's proposed financial services reforms.
"This is a great thing for us because it means that at least [Minister for Financial Services, Superannuation and Corporate Law] Chris Bowen can continue his work on behalf of the government in terms of responding to Cooper," Vamos said.
"I think that it's very important that the process not be stalled, that the industry has an opportunity through the Cooper review to actually provide improvements to fund members and to the industry's efficiency, transparency, accountability and comparability."
Financial Services Council chief executive John Brogden congratulated Gillard on her appointment and acknowledged her move to open negotiations on the RSPT.
"The investment community in Australia and internationally wants a solution to the uncertainty. We acknowledge the need for a resources tax based on profits, and the abandonment of inefficient state-based royalties. But some limits of the current proposal, in particular retrospectivity, have gone too far," Brogden told an audience at a briefing yesterday.
"On behalf of the business community I want to congratulate Julia Gillard on her election as prime minister and to acknowledge her comments this morning to start the negotiations with the mining sector on their RSPT."
Brogden also took the opportunity to acknowledge the work of former prime minister Kevin Rudd for his work in steering Australia through the global financial crisis.
"It's also important to acknowledge ... the phenomenal role that Kevin Rudd played in advancing Australia as a global financial sector," he said.
"We should not forget that in large part it was the quality of our regulation that secured Australia safe passage through the financial crisis."
Australian Institute of Superannuation Trustees chief executive Fiona Reynolds said she expected the new Gillard government to honour the commitment made in the budget to increase the super guarantee (SG) to 12 per cent from 2012.
"Given the considerable advancements that have been made in the past three years in terms of retirement income policy, including reforming the financial planning industry, reforming superannuation through the Cooper review and increasing contributions through the Henry review, we certainly hope that Chris Bowen will remain responsible for superannuation and can see the reforms through to conclusion and implementation," Reynolds said.
Gillard was appointed Australia's prime minister yesterday following a leadership challenge.
