A levy on the major banks represents the key financial services policy surprise contained in the Turnbull Government’s 2017/17 Budget tabled tonight by the Treasurer, Scott Morrison.
Morrison announced a six-basis point levy on the big banks’ liabilities, starting on July 1, but made clear that it would not affect wither superannuation funds or insurance companies.
“This represents an additional and fair contribution from our major banks, is similar to measures imposed in other advanced countries, and will even up the playing field for smaller banks,” he said.
The Treasurer said the levy would only affect the five largest banks with assessed liability of $100 billion or more.
“Importantly, customer deposits of less than $250,000 and additional capital requirements imposed on the banks by regulatory authorities are excluded from their assessed liabilities,” he said.
Morrison stressed that the levy was not just a re-run of the previous bank deposit tax.
“Unlike the previous bank deposit tax, this is specifically not a levy on pensioners’ and others’ ordinary deposit accounts, nor is it on home loans,” he said.
The Treasurer said the measure would secure $6.2 billion over the Budget and forward estimates to support budget repair, including the reversal of significant budget savings measures.
