Australia’s fifth Assistant Treasurer in less than five years is now presiding over the third delay in managed investment trust reforms to have occurred in the space of a year – representing a severe threat to Australia’s financial services industry.
These are the views of Shadow Assistant Treasurer Mathias Cormann, who claims that this latest 12-month delay, which means that the proposed reforms will not come into effect until 1 July 2014, is demonstrates Labor’s inability to secure Australia’s place internationally as a financial services hub.
Based on recommendations by the Johnson Review, initial governmental pledges to make Australia a more attractive destination for investment have, according to Cormann, been reneged upon by Labor – proving the nation’s financial services industry is a very low party priority.
Cormann refers to timely electioneering statements as further cause for concern.
“Labor promised these changes before the last election only to delay them now again until after the next election,” he said. “This is yet further evidence of Labor's paralysis in government and their inability to deliver on their promises.”
What’s more, Cormann believes that Labor’s “mismanagement of the consultation process” has frightened many stakeholders, who now hope that postponing the changes until after the next election will bring a better outcome.
In order to strengthen Australia’s international competitiveness and economic growth, Cormann has claimed that the Coalition will make it a priority to work with all relevant stakeholders in a methodical and predictable fashion to strengthen Australia’s position as a genuine financial services hub.
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