HomeView 2015 Media ReleasesCOBA calls deposit levy a tax on savings

The Customer Owned Banking Association says the Government should walk away from a proposed deposit levy.

The Customer Owned Banking Association says the Government should walk away from a proposed deposit levy.

"This is a tax on the savings of ordinary Australians," COBA CEO Mark Degotardi said.

"In August 2013, Joe Hockey described this tax as "not good public policy" and a simple attempt to bolster the budget bottom line.

"The independent umpire - David Murray's FSI Panel - explicitly rejected this tax.  The RBA Governor has agreed with Mr Murray.

"At a time when the FSI report has found that more needs to be done to foster competition in banking, the first response of the Government is to continue with a flawed policy that actually harms competition.

"Smaller banking institutions like the customer owned sector rely more heavily on deposits for funding and more heavily on smaller deposits. 

"As a result, the smaller banking institutions will bear proportionately more of this tax than the major banks that have greater levels of wholesale funding.

"It is inconceivable that this Government would consider implementing another policy that hinders competition and favours the major banks.

"The customer owned banking sector urges Mr Hockey not to raid the hard earned savings of Australian families and reject this tax."

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies. See coba3.nexusone.com.au

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