Government-imposed competitive barriers that stop financial services companies from competing on a level playing field need to be removed, says Federal Financial Services Minister Chris Bowen.

He says the Government is trying to assist the industry’s competitive advantage by doing things such as reducing withholding tax. But he says more needs to be done.

“We need to build on the great capacity that we have,” he said. “We need to make sure our tax system is conducive to Australia being a financial services hub.”

Mr Bowen has also highlighted carbon trading as a huge opportunity for the financial services industry.

“One of the reasons I think we should have a carbon pollution reduction scheme up and running as soon as possible is the great opportunity it is for Australia in the financial services field, in the trading of permits and derivatives in relation to carbon trading,” he said.