Government has choice to rule out deposit tax
(20 May 2015 – Australia) The Customer Owned Banking Association (COBA) has urged the Australian Government to rule out the deposit tax and not introduce legislation to implement the tax.
“The Government is confusing savers by saying this proposed new tax is ‘Labor’s tax’ and somehow not the Government’s responsibility,” COBA chief executive Mark Degotardi said.
“To be clear, this tax does not exist and cannot be collected until legislation is introduced by the Government and approved by the Parliament.
“The previous Government announced the tax but it was never legislated.
“The incoming Abbott Government referred it to the Financial System Inquiry and the Inquiry recommended against the tax.
Why are we still talking about this tax? The Abbott Government successfully repealed Labor’s Carbon Tax and Labor’s Mining Tax.
It should not be difficult to rule out a ‘Labor Tax’ that doesn’t exist, Degotardi said.
“The only way savers can be hit with this new tax is if the Government introduces the necessary legislation and votes for it in the Parliament. There will be absolutely no doubt about whose tax it is if that happens.
“Savers are doing it tough due to record low interest rates and a new tax on deposits will just make things even worse.
“This tax is not only anti-saver, it is anti-competitive because it hits smaller banking institutions harder than the big four banks,” he said.