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Labor still only part way there on Investment Manager Regime

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Media Release Senator Mathias Cormann Shadow Assistant Treasurer Shadow Minister for Financial Services and Superannuation

12/0621/PK 21 June 2012

Labor still only part way there on Investment Manager Regime

The Coalition welcomes Labor's introduction of the interim Investment Manager Regime legislation that would help facilitate Australia's world class financial services industry to grow the export of their services to overseas investors, especially in the Asia Pacific region.

The introduction of this legislation is long overdue.

A robust and competitive Investment Manager Regime was one of the centrepieces of the Johnson Report recommendations on Australia as a Financial Centre released back in January 2010.

Minister Shorten first announced these changes in December 2010 and January 2011.

For the past 18 months Australian fund managers have continuously told the government that overseas investors will only invest through Australia once legislation has passed Parliament.

The Johnson Report highlighted that the sooner we act the sooner we would empower our financial services sector to access the growing markets on our doorstep and establish Australia as a genuinely world class financial services hub.

The long delay of this legislation, together with Labor’s uncertain position on doubling the final withholding tax on Managed Investment Trusts, demonstrates that Labor is not really serious about developing Australia as a genuine financial services hub in the region.

The Bill introduced today is only an interim step along the path to a full Investment Manager Regime. We call on the Government to introduce the final phase of the Investment Manager Regime as soon as possible.

Given it has taken this long for Minister Shorten to get to this point the question remains, when will Labor finalise legislation to provide Australia with a full Investment Manager Regime?

Every day the government delays the implementation of the full Investment Manager Regime is another day in which Australia misses out on the flows of international investment and we miss out on the associated benefits of higher growth, increased prosperity and growing government revenue.

MEDIA CONTACT: Senator Cormann 0411 874 546