FSC ticks Budget’s lean into long-term plan for financial services

BUDGET REACTION - The Financial Services Council (FSC) has welcomed the Federal Government focusing on its long-term plan for financial services and the investment community with a ‘no surprises’ Budget for the sector.

According to the FSC, the Federal Budget recognised the important role investors play in supporting Australia’s economic growth, outlining a ‘single front door’ strategy for major investors, and a central role for the financial services sector in the government’s Sustainable Finance Policy Agenda.

The FSC welcomed the ‘front door’ strategy and the government’s commitment to consult on how it can facilitate investments, along with the new funding for a product labelling regime for investment products, issuing green bonds, and developing a regulatory framework that complements international frameworks. 

FSC CEO Blake Briggs said, “Australia’s investment community is key to the transition to a low-carbon economy and the Federal Budget recognises the importance of developing an internationally aligned regulatory regime and a clear investment product labelling framework.”

The government confirmed industry-supported reforms to superannuation to back Australians who take paid parental leave (PPL) by paying superannuation on the Federal Government PPL scheme from July 1, 2025.

“We congratulate the government on moving forward with its paid parental leave scheme which would increase the financial security and wellbeing of Australian women, who retire with 25 percent less superannuation than men,” Mr Briggs said.

The Budget also introduced a streamlined foreign investment framework, reducing the regulatory burden on trusted international investors.

“The FSC supports reforms to simplify and streamline foreign investment in Australia and the Treasurer’s plan to exempt low risk interfunding transactions from Foreign Investment Review Board (FIRB) applications and fees,” Mr Briggs said.

“We also welcome the announcement that investors with a proven track record will be provided with a fast-tracked FIRB approval process. These measures will lower the regulatory burden for global investors and ultimately mean lower costs for Australians who invest in those funds.”

While the FSC supported the measures, Mr Briggs said there was more than could be done to capitalise on growth in the Australian financial services industry.

“There are significant opportunities for Australia to become a global financial centre by implementing strategic reform to become a more attractive and competitive destination for international investment,” Mr Briggs said. 

www.fsc.org.au

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