Federal Assistant Treasurer Senator Nick Sherry says the local insurance industry has a role to play in promoting Australia as a regional financial hub.

Speaking at an Investment and Financial Services Association function in Sydney on Friday, he cited the recently released Johnson Report as a blueprint for the financial services sector’s future.

“Many countries in the region will need to develop a wider range of financial services over coming years,” he said. “This includes capital markets, retirement income schemes, and asset management and insurance products.

“Australia’s opportunities for leveraging off our financial services skills and expertise, in the region and beyond, are potentially enormous,” he said. “We have the fourth largest financial services sector in the world, yet we export very little.”

Senator Sherry also highlighted the Johnson report’s recommendation that state-based taxes on insurance be removed.

“The [Federal] Government is carefully considering each recommendation,” he told delegates. “Of course, some of these overlap with issues considered in the independent tax review and will need to be considered in that context.”

He confirmed the Government intends to release the Henry tax review ahead of the Federal Budget in May.