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.
AUTHOR
Malavika Santhebennur
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
