HomeView 2015 Media ReleasesThreat of tax hanging over Australian savings

COBA is very disappointed that tonight’s Budget has not ruled out a new tax on the savings of ordinary Australians.

COBA is very disappointed that tonight’s Budget has not ruled out a new tax on the savings of ordinary Australians.

"The deposit tax remains on the Budget books despite being rejected by the independent Financial System Inquiry (FSI) in its landmark report to the Government,” COBA CEO Mark Degotardi said.

“While the Budget papers say the deposit tax is subject to the Government’s response to the FSI, the fact the Government has not yet ruled it out is ominous news for savers.

“This new tax is scheduled to take effect in 2016 so tonight’s Budget was the right time for the Government to rule it out. The Government’s response to the FSI could be months away.

“The deposit tax is anti-saver because it adds to the already high tax burden on deposits.

“The deposit tax is anti-competitive because it hits smaller banking institutions harder than the big four banks.

“Savers are doing it hard enough because of record low interest rates.

“This tax was announced by the previous Government. The Abbott Government referred it to the FSI. The FSI in Recommendation Number 6 of the FSI Final Report says don’t introduce the tax. The sooner the Government announces it is accepting that recommendation the better for savers.

“We call on the Government to axe the deposit 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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Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
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