Tax change will create hub

THE Australian Stock Exchange believes tax reform can make Australia the financial hub of the Asia-Pacific region.

In its submission to the Senate Select Committee on a new tax system, the ASX said a GST would allow Australia to remove the heavy tax burden on financial transactions.

ASX managing director Richard Humphry said the abolition of indirect taxes should be a priority.

He said indirect state taxes placed a harsh burden on ordinary citizens in their day to day financial transactions, unduly added to capital costs and severely impeded Australia’s role as a regional finance centre.

Mr Humphry said Australia could become a centre through abolishing marketable securities and financial institutions duty, lower tax on capital gains, changes to encourage venture capital and lower company tax.