Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Banking industry welcomes deposit tax decision

A big four bank and two industry associations are rejoicing following the federal government’s decision to scrap the deposit tax.

The abandoned tax, which was proposed by the former Labor government, was designed to protect depositors in the event that an Australian bank collapsed, and would have raised approximately $1.5 billion over the next four years.

CBA chief executive Ian Narev said the said the government’s decision to abolish the tax strikes the right balance between maintaining confidence and supporting economic growth.

Advertisement
Advertisement

“The Australian banking system is strong and resilient without the need to impose additional costs on savers and investors,” he said.

“We congratulate the government for its constructive consultation on this important policy decision, as demonstrated throughout the FSI [Financial System Inquiry] process.”

Mark Degotardi, CEO of the Customer Owned Banking Association, said the policy decision is “pro-consumer and pro-competition”.

“This outcome is exactly what the FSI intended in its blueprint to make our financial system stronger, without anti-competitive distortions,” he said.

“Australian savers now no longer have to worry about an additional burden at a time of low returns on their savings due to record-low interest rates.”

Tony Pearson, executive director of industry policy at the Australian Banker’s Association (ABA) agreed that the scrapping of the deposit tax is a wise policy decision and a welcome end to the uncertainty for savers.

“Millions of Australians who rely on their savings for current and future income would have been hurt by this tax, including many self-funded retirees,” he said.

“The ABA is pleased that the government has moved to protect mum and dad savers and retirees from this unnecessary tax.”

Banking industry welcomes deposit tax decision
mortgagebusiness

Latest News

The prudential regulator has confirmed that it is temporarily suspending the issuance of new licenses in response to the “economic uncerta...

The government has unveiled its previously announced commercial leasing code of conduct, which aims to protect tenants and landlords facing ...

The central bank has revealed that it has purchased over $36 billion in government bonds as part of its quantitative easing program to suppo...

FROM THE WEB
podcast

LATEST PODCAST: Managing the influx of COVID-19-related loans

Do you expect COVID-19 to reduce or increase your business flows?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.