Still angry ABA accuses Govt on policy on the run
The Australian Bankers’ Association (ABA) has accused the Federal Government of policy on the run and of failing to appropriately consult with Treasury before announcing the banks levy in Tuesday’s Budget.
Following a meeting with Treasury officials today, ABA chief executive, Anna Bligh claimed the levy was “fraught with even more uncertainty after Treasury officials were unable to answer key questions at a briefing with banks “.
“Not only has the Government kept the banks and the public in the dark on this new tax, it is now clear that they have kept Treasury in the dark too,” Bligh said.
She said the bank representatives had eft today’s meeting with more questions than answers, with more than 20 important issues that were unable to be addressed, including the basis on which Treasury calculated the $6.2bn estimate, how the new tax would affect transactions between the five banks and the Reserve Bank, and how that might impact the broader economy and which of the banks’ commercial activities will be captured by the tax.
“It is even more clear that this is policy on the run, playing fast and loose with the most critical sector of the Australian economy,” Bligh said. “Alarmingly Treasury officials also confirmed the Government was abandoning normal processes in preparing the legislation.”
Recommended for you
While the last several months have seen increased market volatility, particularly in the US, advisers said there are multiple reasons why there has been an increase in defensive asset flows.
Scarcity Partners believes the dynamics playing out in the managed account and outsourced chief investment officer market are “here to stay” based on positive developments in financial advice.
Former executive chairman of failed stockbroker BBY, Glenn Rosewall, has been charged with aiding, abetting, counselling or procuring BBY’s dishonest conduct in relation to a financial service.
Fidelity International research has revealed Australian investors are significantly more optimistic about the market outlook and feeling more comfortable than their APAC peers, despite ongoing market volatility.
