Australia needs rapid changes in its tax...

Australia needs rapid changes in its tax laws if it is to develop into a global financial center and compete against regional rivals, according to a study published by accounting firm Peat Marwick Hungerfords.

New Zealand, which plans to cut its corporate tax to 28% from 48% in April, was identified as one of the biggest threats to Australia’s efforts to grab a larger slice of regional banking business.

Also cited as competitors were Hong Kong and Singapore. Australian financial markets, which received a boost through deregulation in 1983, were unlikely to develop further without far-reaching government initiatives, it said.