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Update on ASX Initiatives

ASX is a regular participant in industry conferences, such as the ones outlined below.  Industry conferences allow us to meet our customers and learn about the issues impacting their industries.  It also provides us with the information and impetus we need to develop the market and our listing services.

ASX has a role to play to ensure the Australian capital market remains conducive to companies and trusts raising capital in a high quality marketplace.  Where appropriate ASX may also make submissions to government and other bodies where we believe an issue impacts capital raising and trading on our market.

ASX Submissions to Government

ASX made two submissions to the Federal Government in February/March 2006.

Resources Sector:  The first submission supported the introduction of a ‘flow-through-share’ scheme to support resource exploration in Australia. In summary, the ASX position in our paper was that Australia is at a significant competitive disadvantage in attracting global investment in exploration, which is having a material adverse impact on the Australian resource sector.  ASX was of the view that unless we had an appropriate tax environment, Australia would continue to fall behind as a significant equity market for resource companies, particularly the junior explorers so important to the future of our mining industry and to the States of Western Australia and Queensland.  The ASX submission supported the positions taken by the MCA, AMEC and the government’s MEAA.

International Tax:  ASX also wrote to the Treasurer asking him to revisit one of the outstanding recommendations coming out of the Board of Taxation's international tax review in 2003  - i.e., to introduce a tax credit for unfranked dividends paid out of foreign source income.  This would help remove a bias in our current dividend imputation system by reducing the effective tax paid by shareholders of Australian companies with offshore investments.  Australian companies are more globally orientated than they were when dividend imputation was first introduced and ASX argued that such a tax credit would ensure the tax system better reflects the current circumstances of Australia's corporate sector and as well as further enhancing its future growth prospects.

Capital Raising Rules for SMEs

As we have indicated in past edition, we are seeking to amend the ASX listing rule environment so that it facilitates capital raising for companies of all sizes, as well as protecting the interests of Australian investors.  We have held preliminary discussions with ASIC on the key listing rules that impact capital raising the most – the 15% issue rule, the initial shareholder spread rule, and the 20 cents IPO issue price rule.

We will keep you posted on the progress of these discussions.

ASX @ APPEA

ASX was proud to a be a sponsor at the 2006 APPEA Annual Conference held on the 7th-10th May 2006 on the Gold Coast.  The successful event attracted over 1300 delegates and was an important opportunity for ASX to get an insight into particular issues affecting the oil and gas sector of the market.

ASX @ ADPIA 21-23 May 2006

ASX attended the annual Australian Direct Property Investment Association (ADPIA) Conference to learn more about the current trends and issues faced by stakeholders of unlisted property trusts and syndicates. The direct property sector has grown significantly, with now over $17 billion in assets under management. 

ASX @ AMEC National Congress in Perth WA 

ASX is also proud to have had a presence as a sponsor at the recent AMEC conference held at Burswood, WA on the 7th to 9th of June. The event provided an opportunity for ASX to demonstrate its support for the significant number of ASX listed companies represented by AMEC.

ASX @ Property Council of Australia (PCA) – Capital Markets Leader’s Summit

ASX management took part in the PCA’s annual leader’s summit where key challenges facing the property industry and the listed property sector were discussed at a senior level.  ASX CEO and Managing Director Tony D’Aloisio took part in a panel session that compared listing options and regulatory environments between Australia, Singapore and Hong Kong.

ASX also participates in investor tradeshows and conducts its own roadshows to increase investor awareness about investment and trading opportunities and to provide education to investors.

ASX Investing for Income Roadshows, June 2006

These roadshow events for advisers and retail investors were held in Adelaide, Perth, Melbourne, Brisbane and Sydney throughout June. The events showcased a range of income-generating investment alternatives on ASX, including presentations from leading Listed Property Trusts, Infrastructure Funds, Listed Investment Companies and ETFs.
Traders & Investors Expo: From May 2006 to October 2006 in various locations
This is Australia's only exhibition and educational forum dedicated to the needs of private/professional traders, active investors, DIY super trustees and their suppliers. Visit Traders Expo website for more information.

Investment Expo: From March 2006 to October 2006 in various locations

Examine the best investment options at Australia's largest investment show. Talk face to face with the experts and become a better educated investor. Held together with The Property Expo. Visit  Investment Expo