Chris Bowen (Prospect, Australian Labor Party, Shadow Assistant Treasurer) Share this | Hansard source

Mr Deputy Speaker, I respect that and will not press the point. This government has been completely neglectful of the funds management industry and the financial services industry in this country. This bill, which we support, is less than one-tenth of what is needed in this country to remove the impediments to enable the financial sector to compete overseas. With growth of funds under management around the world Australia, with, I think, the 53rd highest population in the world, has the fourth highest level of funds under management. We are trying to attract more funds from overseas to be managed in Australia, but we have an uncompetitive tax regime and the government is refusing to do anything more about it.

I could speak for a long time on the bill, Mr Deputy Speaker, but I know that you have certain views and, out of respect for you, I am not going to press those views. The government has completely failed in this area. The short-sightedness it has shown over the last few weeks has earned it no friends in the financial services industry for a very good reason. Some of the arguments we have heard have verged on the Hansonesque—I use that word advisedly—by saying that there is no need to provide tax relief to foreigners when we should first be providing tax relief to Australians. That shows a great lack of foresight from the government and a very disappointing approach. I support this bill. It is a small but necessary step. The Labor Party is happy to support the expeditious passage of this legislation through both houses of this parliament.

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