Australians against proposed deposit levy

The Essential Poll, commissioned by The Customer Owned Banking Association, found 58 per cent of people oppose the deposit levy, while 65 per cent believe customers will be hit with the tax, rather than shareholders or banking institutions.

The poll also found 60 per cent of Australians want the federal government to accept the Financial System Inquiry recommendation to not introduce a levy.

“Consumers are quite rightly concerned about a new tax on bank accounts, where the tax burden is already quite punishing,” COBA chief executive Mark Degotardi said.

“The poll shows opposition to the levy rises with age and is particularly strong from Australians aged 55 and over, a group that is more focused on their savings and more likely to hold bank deposits.”

Mr Degotardi noted the tax burden on bank accounts is “already unfairly high” and the levy will make it worse.

“COBA is against the levy because it is anti-competitive, adds a new tax to an already heavily taxed savings vehicle, and is at odds with the FSI blueprint for a more competitive and consumer-focused financial system,” he said.