NO.006

MINISTERS MOVE CER ANOTHER STEP FORWARD

A significant breakthrough in the alignment of trans-Tasman tax law and a commitment

to meet each year were agreed today by Australian Treasurer Peter Costello and

New Zealand Finance Minister Michael Cullen.

Both governments expect to introduce legislation in May to extend their imputation

regimes to include companies resident in the other country.

“This change has been long sought and will remove an important impediment

to trans-Tasman business. We are pleased to be able to announce it as part of

the 20^th anniversary of Closer Economic Relations [CER],” the

Ministers said.

They noted that CER was one of the most successful economic agreements in the

world and had delivered much to both partners. Bilateral trade in goods had

doubled in real terms since the Treaty was signed in 1983, and the trade in

services was also growing steadily.

“Today’s talks were very constructive and indicative of the steady and

practical progress being achieved under CER,” they said.

Mr Costello and Dr Cullen endorsed the benefits of meeting annually given the

importance of issues within their respective portfolios to both economies and

to the trans-Tasman relationship.

“Our principal focus is to encourage trans-Tasman business through the

co-ordination of business, regulatory and tax law. Current work includes possible

bilateral initiatives in securities offerings and insolvency proceedings.”

They also discussed the desirability of international accounting standards

and how New Zealand and Australia could jointly promote their development and

adoption.

The Ministers agreed that policy co-ordination in these areas had already proven

valuable and asked officials to explore ways of enhancing that co-ordination.

19 February 2003