ASX Welcomes The Government's Business Tax Reforms

The Australian Stock Exchange ("ASX") welcomes the Government's recommendations for tax reform which respond to the Review of Business Taxation. "The Government's initiatives will be a giant step towards making Australia's taxation system internationally competitive," said Mr Richard Humphry, ASX's Managing Director & CEO. Some key recommendations impact directly on Australian shareholders: investors should benefit from the reforms to capital gains tax paid by individuals and superannuation funds; and refundable franking credits would enable many low-income shareholders to obtain greater returns from dividends. "Lower capital gains taxes for individuals and certain venture capital investments will have powerful economic effects by encouraging entrepreneurship in Australia," he added. "The recommendation for scrip-for-scrip rollover relief will facilitate corporate restructuring that is vital for continuing Australia's productivity growth. "This will lead to growth in Government revenues, as investment and savings respond to these important initiatives."