Scrapping of proposed deposit tax welcomed by COBA

01 September 2015

The Federal Government has abandoned plans for a bank deposit tax which would have imposed a 0.05 per cent levy on deposits up to $250,000 from the start of next year.

Welcoming the announcement and congratulating the government in not imposing the tax, COBA CEO Mark Degotardi has labelled the decision as “pro-consumer and pro-competition.”

The Customer Owned Banking Association (COBA), a BCCM member, have been strident in their opposition to the proposed tax pointing to the adverse impacts it would have on Australian savers and smaller banking institutions.

“This outcome is exactly what the FSI intended in its blueprint to make our financial system stronger, without anti-competitive distortions. We support this positive response by the Government today and look forward to the continued implementation of the independent FSI blueprint”, concluded Mr Degotardi.