Today, Prime Minister Kevin Rudd, Treasurer Wayne Swan, Minister for Superannuation and Corporate Law Nick Sherry and Assistant Treasurer and Minister for Competition Policy and Consumer Affairs Chris Bowen met with representatives of the Australian banking industry to discuss how to increase domestic competition and expand the financial services industry both here and abroad.
The Prime Minister and Treasurer welcomed the Australian Bankers' Association's support for its commitment to positioning Australia as a financial services hub, and indicated that the Government looks forward to a constructive ongoing dialogue with the industry .
The Rudd Government is committed to strengthening Australia's place as a financial services hub in the Asia-Pacific region, and has already announced a range of initiatives to enhance the financial services industry in Australia.
In the Government's first Budget we announced a significant cut in the level of withholding tax from a non-final rate of 30 per cent to a final rate of 7.5 per cent on certain distributions from Australian managed investment trusts to foreign resident investors - giving Australia one of the most competitive tax regimes in the world.
The Government is implementing a national approach to credit regulation. This will reduce red tape for business, whilst ensuring that working Australians are protected from unscrupulous behaviour by some operators.
The Government has also announced a number of bilateral agreements to improve access to key overseas markets for the Australian financial services industry.
The Government is jointly hosting with the NSW Government a Financial Services Hub Summit on 31 July. The Summit will examine the strengths of Australia's financial services sector, opportunities to build the sector and barriers to the sector's growth internationally. We look forward to the banking industry's participation at the summit.
The difficult global financial environment and its impact on Australia were also discussed.
The Treasurer acknowledged the pressures placed on borrowing costs as a result of the global credit crunch, but reminded the banks that hard-pressed families will reward institutions that provide relief when it's possible.
The Treasurer also outlined the importance of a stable and competitive banking sector that provides the best possible services to consumers at the lowest possible cost.
He stressed the importance of the Government's bank switching package to enhancing competition and welcomed the industry's commitment to fully implementing the package by November this year.
The Treasurer also discussed the progress the banking industry is making to ensure that customers can open First Home Saver Accounts on 1 October, when the legislated Scheme comes into effect.