Australia as a regional financial services centre

World's best practice

The Australian financial sector is recognised internationally as being among the most innovative and best regulated in the world.

A strong regulatory framework, first class supervisors, and prudent commercial decision‑making have ensured the resilience of our financial system during the global crisis.

The Government is committed to building on these strengths to position Australia as a regional financial centre.

Interest withholding tax

The Government will phase down the interest withholding tax rate incurred by

financial institutions on most interest paid on offshore borrowings. This will make Australia more attractive as an investment destination and help secure our place as a leading regional financial centre.

Managed investment trusts

The Government will introduce a specific taxation regime for Managed Investment Trusts, which will increase certainty, reduce complexity and minimise compliance costs for industry and investors.

This will enhance the global competitiveness of the Australian managed funds sector for attracting foreign funds under management.

Centre for International Finance & Regulation (CIFR)

The Government will establish a regional centre for excellence in financial system innovation and regulation.

The centre will aim to:

• provide education and training for financial regulators from Australia and the region
• undertake research into best practice regulation
• undertake research into financial sector global developments
• enhance regional and financial system stability.