COBA labels deposit tax friendless and anti-competitive

06 May 2015

Ahead of the Budget Budget announcement next week in Parliament by the Federal Government, the Customer Owned Banking Association (COBA) has reiterated its opposition to the proposed deposit tax. The proposed tax, a 0.05% levy on every deposit of up to $250,000, has already been signalled by Treasurer Joe Hockey, as one of many savings measures found within the budget.

BCCM member COBA argues it is anti-competitive it is anti-competitive because it hits smaller banking institutions harder than the big four banks. Furthermore, COBA state the tax will hurt consumers and do nothing to secure Australia’s financial system or restore consumer trust. This follows similar calls to abandon the tax from academics, the FSI and everyday Australian savers.