Posted July 30, 2018 09:59:49 Government officials are seeking to shift the focus of the nation’s financial system from the “dramatic” problems of the past to the future.
Key points:The government will publish its blueprint to transform Australia’s financial systems in the coming monthsFinancial institutions will have to adopt a new approach to managing risk, with more focus on risk managementThe reforms are likely to be released on Wednesday, July 31The blueprint will include a blueprint for how the Australian economy should move forward, with the Government expecting to publish it next week.
The blueprint, due to be published on Wednesday evening, will be the most detailed assessment yet of the Government’s plan to shift Australia’s economic and financial systems to the 21st century.
Key changes are likely:The blueprint is likely to include a proposal to “modernise” Australia’s way of doing business and make it more transparent.
It is also likely to detail the government’s commitment to reducing debt, which has been a cornerstone of its economic policy since the 2016 election.
It will also include a plan to overhaul Australia’s tax system, with a new “taxing code”, a new corporate tax regime and a system for taxing the value of the Australian property market.
Key areas of concern are the way the tax system is set up, the amount of wealth held in offshore accounts and the ability to reduce the amount that people can borrow.
The government is expected to outline a set of measures that it will introduce to the Commonwealth’s tax laws, including a new personal income tax and the introduction of a new Goods and Services Tax.
Those measures are likely subject to a review, including by the Parliamentary Budget Office.
A report on the blueprint released on Tuesday said it would set out a “big, ambitious” vision of a system of financial regulation that “requires a new way of thinking about risk management, and of course, a new mindset about managing debt”.
“Australia’s financial infrastructure will be changed to be more resilient to a wide range of risks, but we will also need to recognise the fact that we are in a world of complex shocks,” the government said in the release.
The budget is likely not to change the Government to change its position on the GST or to make the tax changes, with Finance Minister Mathias Cormann indicating in a statement that the Budget will “set out a range of measures and priorities”.
The blueprint could also see the Federal Government move towards a “federalized” approach to financial markets, where the central bank would act as a regulator of the market.
The Federal Reserve, which is also in charge of the US financial markets in the US, would be given the power to intervene in the markets, and the Government would also take steps to prevent the financial markets from being flooded with capital in the future, Mr Cormann said.