Bank levy is ‘all fizz, no pop’

20 June 2017
| By Mike |
image
image
expand image

The Government’s imposition of a levy on the major banks plus Macquarie represents “all fizz, no pop” which won’t deliver genuine improvements to the culture and behaviour of banks, according to the Finance Sector Union (FSU).

The union, representing the bulk of workers in the financial services and banking industry, has told the Senate Economics Committee inquiry into the Major Bank Levy Bill 2017 that while it supports a fairer and more progressive tax system, focusing on a single industry to address a short-term fiscal deficit would not strengthen the Government’s ability to provide the high-quality public services and social security that Australians wanted, needed and deserved.

“The finance industry has, by its own admission, lost the trust of the community through their actions,” the union submission said and acknowledged that “a levy on the banks may be seen to be a punitive measure by Government that is welcomed by the community”.

However it added: “The FSU is of the opinion that this is an ‘all fizz, no pop’ policy that won’t deliver genuine improvements to the culture and behaviour of banks towards the community at large”.

The union said one of its major concerns about the levy was that it would create an excuse for the banks to implement a round of job cuts.

“It has been widely reported that this levy is likely to be passed down to shareholders or customers through either smaller dividends or increased interest rates and fees, however it is of particular concern of the FSU and its members that employees will bear a significant brunt of any cost savings driven by the introduction of this levy,” the submission said.

“One of the less acknowledged contributions of the Australian finance industry is its significant contribution to the employment of Australians. The ADI’s subject to this levy employ in excess of 125,000 employees,” it said. “In an industry that is rapidly changing, with the jobs of today unlikely to be the jobs of tomorrow, it is our concern that this levy will provide an excuse for job cuts that are even greater than those already forecast. This will detrimentally impact the fair contribution the government seeks from the Bill.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago