HomeView 2015 Media ReleasesConsumers convinced deposit levy is a tax they’ll pay

Consumers are convinced they will be forced to foot the bill for the proposed deposit levy, rather than shareholders or banking institutions.

  • Consumer poll shows almost 60% of Australians oppose the proposed deposit levy
  • 65% believe customers will ultimately be forced to pay this tax, not shareholders or banking institutions
  • 60% say the Government should accept the FSI’s decision and not implement this tax
  • Older Australians strongly oppose a levy on their savings

Consumers are convinced they will be forced to foot the bill for the proposed deposit levy, rather than shareholders or banking institutions.

A consumer poll of more than 1000 people on the proposed deposit levy found Australians believe it will ultimately be a new tax on depositors.

The Essential Poll commissioned by COBA found 58% of Australians oppose the deposit levy and 65% believe customers, not banks or shareholders, will be forced to pay this tax.

The poll also found most Australians want the Federal Government to accept the recommendation of the independent umpire, the Financial System Inquiry (FSI) Panel, and not introduce a levy.

Older Australians are particularly concerned about the prospect of this new tax on their hard earned savings.

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

“The poll shows opposition to the levy rises with age and is particularly strong from Australians 55 and over, a group that is more focused on their savings and more likely to hold bank deposits. 84% of people aged 65+ believe they will be forced to pay this new tax.

“Consumers are saying no to this tax. They are not alone, with the independent FSI Report also against it.

“The tax burden on bank accounts is already unfairly high, as noted in the Government’s Tax Discussion Paper released last week. The levy will make this worse.

"In a contest between banks, shareholders and customers, consumers fear it's the average Australian saver who is likely to finish last and pay the price.

"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.”

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

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