ANZ CEO says high taxes prevent Australia from being top Asian financial hub

ANZ Group chief executive Nuno Matos stated on Tuesday that Australia is lacking a tax regime to attract foreign capital, unlike other financial centers in the Asia-Pacific region. Matos noted that Australia has the necessary elements, such as developing capital markets and a significant pool of domestic savings from its compulsory pension system, which are crucial for a financial hub.

However, he emphasized that Australia's tax regime is not favorable enough to draw foreign investment. Matos pointed out that capital does not flow into high-tax environments. He highlighted that tax havens like Hong Kong and Singapore, which have minimal capital taxes, are different. Matos concluded that for Australia to become a financial hub, it needs to significantly alter its capital taxation policies.

In June, Australia's parliament passed legislation to eliminate the 50% capital gains tax discount on assets held for over a year, effective from July 1, 2027, reverting to the pre-1999 policy of taxing inflation-indexed gains with a 30% minimum tax on net capital gains. Additionally, Australia introduced legislation last week to broaden the types of assets subject to capital gains tax for foreign residents.