7 June 2017
Today’s weak economic growth figure highlights the need to maintain a strong banking industry, the Australian Bankers’ Association said today.
“While the economy grew by a soft 1.7 per cent over the year to the March quarter, the finance and insurance industry grew by a strong 4.0 per cent,” ABA Chief Executive Anna Bligh said.
“Also, the latest inflation figures show that the price of financial services has increased by less than overall inflation, and by much less than some essential items like child care, education, and health.”
Ms Bligh said in this environment the Federal Government’s new tax on major banks was contrary to the national interest.
“You don’t win the race by knobbling your fastest runners,” she said.
“And you can’t tax your way to prosperity. The Government needs to rethink this new tax.”
Over the three years ending June 2016, productivity of the finance and insurance industry has been on average 2.6 per cent per year, nearly four times higher than the overall market sector (on average, 0.7 per cent per year).
ENDS
Contact: Nic Frankham 0435 963 913 (Stephanie Arena is on leave)
Latest news
Australian banks strongly support the RBA’s proposed ban on debit and credit card surcharges, while overwhelmingly calling for an alternative pathway forward on interchange fees. The ABA has made the following calls in a submission to the RBA’s current consultation on the Review of Merchant Card Payment Costs and Surcharging: ABA CEO Simon Birmingham said… Read more »
Australia’s banks welcome the passing through the Senate of new legislation to ensure payments laws are up-to-date and reflect today’s digital economy. The new laws will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly enhancing protections for customers. ABA CEO Simon Birmingham said… Read more »
The ABA welcomes the passage through the House of critical legislation to ensure Australia’s payments regulatory framework is brought up-to-date and urges the Senate to quickly pass this overdue legislation too. The proposed legislation will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly… Read more »