The Federal Government intends to set up a financial sector taskforce and dedicated research body as part of plans to promote Australia as a regional financial services hub.

The Government announced the measures on Budget night in response to an earlier report by the Australian Financial Centre Forum’s Johnson Report, which was released in January.

The Government has given its in-principle or direct endorsement to nearly all of the Forum’s 19 recommendations, which are intended to support measures to position Australia as an Asian financial hub.

Key initiatives include a plan to ease the interest withholding tax paid by financial institutions and the introduction of investment and regulatory initiatives designed to promote cross-border trade in financial services.

The Government has also announced it will also set aside $25 million over four years to establish the Centre for International Finance and Regulation within an Australian university.

It will provide tertiary education to financial regulators and undertake research into financial sector innovation and global sector developments.

A dedicated financial sector taskforce, which includes Financial Centre Forum Chairman Mark Johnson, is intended to foster Australia’s presence in Asia. It includes AMP CEO Craig Dunn and former FPA CEO Jo-Anne Bloch, now Member Services and Advice Leader at consultants Mercer.