Planned corporate tax cuts in Australia unveiled in the budget on May 3 are estimated to cost just over A$48bn (US$35.4bn) over the next 10 years.
Australia’s prime minister, Malcolm Turnbull, who confirmed shortly after the budget was unveiled that he will call a general election on July 2, had previously declined to offer a figure both in a television interview and in response to the opposition Labor party.
However, in subsequent Senate estimates, treasury secretary, John Fraser, said the 10-year cost of lifting the small business threshold to A$10m and reducing corporate tax to 25% would be A$48.2bn. The current rate is 30% and reached a record high of 49% back in 1986.
The first stage, from this July, will be a reduction from 30% to 27.5% in the rate for small businesses with annual turnover of less than A$10m, while an uniform rate for all businesses of 25% will be in effect by 2026-27. The policy reflects Turnbull’s belief that offering incentives to innovators is key to Australia’s continuing economic growth.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.