Banking News

$640 million levy being considered for financial sector

(25 February 2019 – Australia) The Federal Opposition Labor party is due to announce plans for a $640 million levy on the nation’s large banks and financial institutions.

The levy is aimed at supporting people ripped off by the financial sector and stems from the findings of the banking royal commission.

The levy would raise $160 million a year over four years, targeting any financial institution in the top 100 companies on the ASX which would include the major banks, such as Commonwealth and NAB, as well as smaller institutions, including Bendigo and Adelaide Bank, Suncorp, Macquarie and AMP.

A total of $320 million from the fund would be used to double the number of financial counsellors across the country, from 500 to 1,000, to support Australians in financial strife.

The nation's big banks have already been hit with a tax on their operations, announced under former prime minister Malcolm Turnbull.