ABA demands more bank levy detail
The Australian Bankers’ Association (ABA) has called on Treasury to release more information on the impact of the bank levy imposed in the 2017 Federal Budget and the reasoning behind it, while “noting the severely truncated consultation period”.
In a letter to Treasurer Scott Morrison, ABA chief executive, Anna Bligh said the banking industry was attempting to understand the levy’s policy objectives, consult with Treasury on the final design of the policy measure, while it sought commitment from the Treasury to abide by the final obligations.
“The ABA believes releasing the analysis we have requested today is one small step to ensuring we can limit the unintended consequences and economic harm to Australians of what is clearly a hastily designed tax,” Bligh said.
The ABA has asked Treasury to release the following:
- Treasury’s modelling on the economic impacts of the bank levy, including the wider impact on Australian households and businesses;
- Treasury’s technical analysis that underpinned the design of the tax, including the coverage of banks and the design of the levy; and
- Treasury’s modelling, including total revenue projections to be collected by the bank levy over the forward estimates.
The ABA has asked for the information by 16 May, which it said would assist the banks in providing feedback to Treasury on the draft legislation, which the ABA expected to receive on 17 May, with 24 hours to respond.
Morrison announced a six-basis point levy on the big banks’ liabilities starting on 1 July, but said it would not affect superannuation funds or insurance companies.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
