ABA calls for more consultation on major bank tax and release of Regulatory Impact Statement

Sydney, 15 May 2017: The Australian Bankers’ Association has today called for the Federal Government to release analysis of the impact of the major bank levy on the broader economy, including households and businesses.

“It is an understatement to say that this tax requires a thorough Regulatory Impact Statement (RIS),” ABA Chief Executive Anna Bligh said.

“A poorly-designed tax could have consequences for the nation’s finances and for everyday Australians.

“Under the Government’s own guide to regulation, only the Prime Minister can exempt a government entity from the need to complete a RIS, and we urge Prime Minister Turnbull not to do this,” she said.

In a submission lodged to Treasury today, the ABA said the introduction of the proposed new major bank tax disregarded the Government’s own best practice guidelines.

“The Government has failed to meet its own criteria around transparency and accountability in decisions, evidence-based policy development, and effective administration of regulation,” Ms Bligh said.

“Further Treasury analysis is imperative, including on the modelling of the economic impacts of the tax, and banks should be given at least four weeks to respond to the Treasury analysis, the draft legislation and explanatory memorandum.

“A longer consultation period, including engagement between banks and all affected regulators, will help to avoid unintended consequences on the economy and financial system,” Ms Bligh said.

A copy of the ABA submission is attached.

ENDS

Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913

@austbankers

bankers.asn.au