The Financial Services Council (FSC) has welcomed the 2025 federal budget, noting it has provided stability for the financial services industry in the lead-up to the election.
“We congratulate the Treasurer for focusing on cost-of-living challenges facing Australians and delivering stability and certainty for the financial services industry in advance of the federal election,” FSC chief executive Blake Briggs said.
In particular, the industry body applauded the government’s focus on improving the integrity of the country’s superannuation system via the $50 million spend over three years to extend the Tax Integrity Program, which will allow the ATO to ensure timely payment of superannuation liabilities by Australian businesses.
In addition, it supported the multi-year commitment made to improving the funds management tax regime through measures to clarify arrangements for managed investment trusts, with the aim of ensuring legitimate investors can continue to access concessional withholding tax rates in Australia.
“As one of the largest contributors to the domestic economy, this continued finetuning of the financial services framework is welcome, however, there remains significant opportunity for the next parliament to refocus on economic growth and regulatory simplification opportunities to grow the economy,” Briggs suggested.
He pointed out the FSC had made policy proposals to improve the standing of the financial services sector even further.
“The FSC has recommended policy proposals that would increase financial services exports by almost $2 billion a year and lift the sector’s productivity by $800 million a year through a combination of reducing regulatory costs, lowering fees and investing in new markets,” he indicated.
Specifically, the council has called on the government to rationalise legacy superannuation and managed investment products, form a body focused on reducing inefficient regulation, have the breach reporting regime simplified, introduce a product labelling regime for sustainable and responsible investments, and provide a level playing field under the foreign investment framework.