Aust stocks close flat

Local bourse moves sideways following govt scrapping of proposed super, tax changes.

The Australian stock market has recovered from earlier losses to close flat after the federal government announced it would scrap proposed superannuation and fringe benefits tax reforms put forward by the previous Labor government.

At the official market close of 1615 AEDT, the benchmark S&P/ASX200 index edged up 0.03% to 5,433.8 points, while the broader All Ordinaries index was 0.01% higher at 5,426 points.

IG market strategist Stan Shamu said it was surprising the market had not rallied given a number of top ASX companies were due to go ex-dividend in the next couple of days.

"Given nearly 20 points come out of the market tomorrow and over 11 points on Friday as heavyweights such as ANZ Bank Ltd, National Australia Bank Ltd and Westpac Banking Corporation Ltd go ex-dividend, I would have expected to see some last-minute buying in some of these names," he said.