The Government announced that the bank deposit levy will not proceed. The decision will amount to a $1.5 billion hit on the budget.
Labor announced the proposed levy from 2016 two years back, and included the potential savings in its budget figuring. The FSI made a recommendation focussing on raising required capital ratios to best international standards rather than a bank deposit tax.
The levy was perceived as a revenue grab, rather than good policy.
Mr Abbott said it was very important Australia’s banks were safe and secure and the best way to ensure that was through a good prudential regulatory system.
