HomeView 2015 Media ReleasesGovernment should rule out deposit tax

COBA has urged the Government to rule out the deposit tax by announcing it will not introduce legislation to implement the tax. 

COBA has urged the Government to rule out the deposit tax by announcing it will not introduce legislation to implement the tax.

“The Government is confusing savers by saying this proposed new tax is ‘Labor’s tax’ and somehow not the Government’s responsibility,” COBA CEO Mark Degotardi said.

“To be clear, this tax does not exist and cannot be collected until legislation is introduced by the Government and approved by the Parliament.

“The previous Government announced the tax but it was never legislated. The incoming Abbott Government referred it to the Financial System Inquiry and the Inquiry recommended against the tax.

“Why are we still talking about this tax? The Abbott Government successfully repealed Labor’s Carbon Tax and Labor’s Mining Tax. It should not be difficult to rule out a ‘Labor Tax’ that doesn’t exist.

“The only way savers can be hit with this new tax is if the Government introduces the necessary legislation and votes for it in the Parliament. There will be absolutely no doubt about whose tax it is if that happens.

“Savers are doing it tough due to record low interest rates and a new tax on deposits will just make things even worse.

“This tax is not only anti-saver, it is anti-competitive because it hits smaller banking institutions harder than the big four banks.”

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

Media Release

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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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