ABA demands more bank levy detail

ABA/bank-levy/federal-budget/

15 May 2017
| By Malavika |
image
image
expand image

The Australian Bankers’ Association (ABA) has called on Treasury to release more information on the impact of the bank levy imposed in the 2017 Federal Budget and the reasoning behind it, while “noting the severely truncated consultation period”.

In a letter to Treasurer Scott Morrison, ABA chief executive, Anna Bligh said the banking industry was attempting to understand the levy’s policy objectives, consult with Treasury on the final design of the policy measure, while it sought commitment from the Treasury to abide by the final obligations.

“The ABA believes releasing the analysis we have requested today is one small step to ensuring we can limit the unintended consequences and economic harm to Australians of what is clearly a hastily designed tax,” Bligh said.

The ABA has asked Treasury to release the following:

  • Treasury’s modelling on the economic impacts of the bank levy, including the wider impact on Australian households and businesses;
  • Treasury’s technical analysis that underpinned the design of the tax, including the coverage of banks and the design of the levy; and
  • Treasury’s modelling, including total revenue projections to be collected by the bank levy over the forward estimates.

The ABA has asked for the information by 16 May, which it said would assist the banks in providing feedback to Treasury on the draft legislation, which the ABA expected to receive on 17 May, with 24 hours to respond.

Morrison announced a six-basis point levy on the big banks’ liabilities starting on 1 July, but said it would not affect superannuation funds or insurance companies.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND