Improving Australia’s Financial System

First reactions to the Financial System Inquiry

The release on 20 October 2015 of the final Financial System Inquiry report has proved to be the largest overhaul in nearly two decades for the financial system, starting almost immediately.

Key recommendations call for

  • Lower credit card and bank fees
  • Better superannuation options
  • Improved financial products and advice
  • Increased innovation and a focus on leveraging new technologies
  • Robust banks reducing the risk of tax payer bailouts

The Financial System Inquiry will establish a direction for the future of Australia's financial system and will out lay a 'blueprint' for the financial system over the next decade.

We’ve pulled together a snapshot of the headline recommendations and our initial reactions and insights. 

Improving Australia's Financial System

The focus on the regulatory system provides important impetus to continue the efforts in ensuring that Australia retains a world class regulatory system.

PwC's submission to Australia's Financial System Inquiry

PwC Australia recently submitted its formal response to the Australian Federal Government's inquiry into Australia's financial system. Our submission calls for wide-ranging reforms to be made to three critical areas of the nation's financial system: superannuation, bank funding and taxation.

Being more realistic about the inherent uncertainty of the future drives several key themes in our submission:

  • Investment needs to be driven towards genuinely productive parts of the economy and excessive investment in housing avoided
  • Australia's fiscal position needs to be repaired to give flexibility to withstand future stresses
  • Simple regulation is likely to be much more effective than complex regulation in an uncertain world

PwC's Financial Services Leader for Australia, Hugh Harley says about this submission: "Finance must be directed to the best and highest uses and our financial system needs to be sufficiently robust to withstand the inevitable stresses and surprises of coming decades. This requires consistent economic growth, genuine productivity improvements and sound Budgets."

Headed by Mr David Murray AO, the inquiry will make recommendations on the future of Australia including its financial services competitiveness, efficiency and stability. The inquiry helps shape the nation's broader deregulation agenda and follows the Wallis and Campbell inquires of the 80s and 90s.

The recommendations - 35 in total - are contained in PwC's submission to the Federal Government's Financial System Inquiry.

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Contact us

Julie Coates
Financial Services Industry Leader
Tel: +61 2 8266 2006

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