The submission outlines two key tasks for the FSC ahead of the Federal Budget – to consider ways in which the insurance and superannuation industries can “reduce the pressure on public finances” and to “make recommendations to grow Australia’s largest industry through policy and taxation changes”.
Using global comparisons, FSC chief executive John Brogden argues in the submission that as investment in the mining and natural resources sector is “winding down”, the federal government needs to ensure that Australian maintains its “competitive advantage” in the services economy.
At 8.7 per cent of GDP, financial services is the largest sector in the economy,” Mr Brogden wrote. “Our financial services industry is diverse, innovative, scalable and well-regulated. We have world-leading capabilities in funds and private pension management.
“However, regulation has held the industry back from developing into an export industry. The industry has been unable to deliver for Australia beyond our shores.”
Mr Brogden submitted that while Australian fund managers are “globally recognised”, the nation is falling behind others such as Hong Kong, Singapore, Ireland and Luxembourg in terms of attracting “financial services through targeted regulatory and taxation settings”.
“We are losing this business to Hong Kong, Singapore and others in our time zone,” the submission stated. “We urge the government to reform our regulatory and taxation settings to enhance our competitiveness and export opportunities.”
