Financial Services, Superannuation and Corporate Law Minister Chris Bowen has described the coming federal election as crucial for the future of the financial services industry as the two political parties have fundamentally different attitudes towards the sector.
"There are major policy decisions at stake on August 21; policy decisions that won't just change outcomes in August 2010, or even August 2011. These are policy decisions that will fundamentally reshape our nation 20, 30 or 40 years into the future," Bowen told the 2010 Financial Services Council annual conference in Melbourne.
One key policy difference he cited between the two major political parties was their attitude toward the superannuation guarantee.
"We've addressed the question of adequacy, ensuring that all Australians have enough to set aside for their retirement, by [announcing] a timetable for increasing the superannuation guarantee from 9 per cent to 12 per cent," he said.
"Now, compulsory super would never have made it to 9 per cent under a coalition government and [opposition leader] Tony Abbott has made it clear he does not support moving to 12 per cent."
Another key difference between the government's approach towards the industry and the coalition's plans involves the Centre for International Finance and Regulation in Australia.
The government is committed to establishing this initiative, having already allocated $25 million in funding over the next four years, with the key objective being to foster financial services innovation while managing risk appropriately.
"The opposition has announced if elected it will scrap this centre. The coalition has described funding for the centre as, and I quote, 'foreign aid'," Bowen said.
"There is a stark choice on August 21, a binary choice, black and white, night and day."
