Australians need to save more
(6 November 2009 – Australia) An Australian finance heavyweight wants the government to reduce tax on savings.
Gail Kelly, chief executive officer, Westpac has suggested cutting tax as one way to lift savings and suggested incentives could be considered in the tax review led by the head of the Federal treasury Ken Henry, due to report to the government next month.
Mrs Kelly has said that she believes Australians are not going back to the world they knew before the global financial crisis.
Australia is a very highly indebted country and on average consumers borrow twice as much as they save, Mrs Kelly said.
She believes that Australians should have increased rewards for savings and greater costs for borrowing.
To avoid another global financial crisis Australia needs to incentivise and drive additional savings as a nation, Mrs Kelly added.
Australia raised most of its lending requirements from overseas banks due to low customer deposits, adding to its vulnerability to the global financial crisis.
Mrs Kelly has said that she believes Australians are not going back to the world they knew before the global financial crisis.
Australia is a very highly indebted country and on average consumers borrow twice as much as they save, Mrs Kelly said.
She believes that Australians should have increased rewards for savings and greater costs for borrowing.
To avoid another global financial crisis Australia needs to incentivise and drive additional savings as a nation, Mrs Kelly added.
Australia raised most of its lending requirements from overseas banks due to low customer deposits, adding to its vulnerability to the global financial crisis.
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