Case mounts against ‘friendless’ tax

The Customer Owned Banking Association says opposition is mounting against the government’s proposed deposit levy.

COBA chief executive Mark Degotardi has called on the government to join savers, academics and the Financial System Inquiry in saying no to the “friendless” tax.

“Over-50s lobby group Senior Australia is saying loud and clear: ‘leave savers alone’,” he said.

“University of New South Wales academics describe the deposit tax as ‘dumb policy’.

“The Murray Inquiry, the most significant and wide-ranging inquiry into the financial system in two decades, recommends against the tax.”

Mr Degotardi said the deposit levy is anti-competitive because it hits smaller banks harder than the big four.

He said the levy is also “anti-saver” because it adds to the already unfairly high tax burden on deposits.

“The deposit tax is the last thing savers need at a time when interest rates are at record lows,” Mr Degotardi added.

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