Party calls for gouging tax on banks

by Adam Smith20 Mar 2013

A new political party has proposed a "gouging tax" to take on bank profits.

The Bank Reform Party has announced details of what it says will be its centrepiece policy. The proposed "gouging tax" would hit banks if they fail to pass on rate cuts in line with easing funding costs.

The BRP has said it will set up an independent panel to review funding costs, revenue and margins to determine if banks were being "honest" in their assessment of mortgage rates.

"The Big Four, and their subsidiaries, hoovered $3.7bn out of Australian's pockets last year on mortgages alone by gouging on the RBA cash rate while citing funding costs as justification," BRP leader and NSW Senate candidate Adrian Bradley said.
 
Bradley claimed that bank funding costs were falling, but that banks "continue to hide behind them while hurting mortgage holders and small businesses".
 
Bradley claimed the proposed tax would vary from the levy put forward by the Greens. He said the levy would put additional pressure on banks to hike rates in order to shore up profits.
 
"The Greens' levy proposal is a green light for banks to continue gouging, whereas the BRP proposal is a speed camera," Bradley said.
 
The BRP also proposed that money raised from the "gouging tax" go to fund a "People's Bank" and financial literacy programs.

COMMENTS

  • by Chris Coonan 20/03/2013 9:58:12 AM

    You gotta be kiddin'. Banks will just increase their fees and margins to cover the impost....hasn't anyone learned this yet. The best way is to move to the competition. We are seeing this now - the majors are finally reducing their margins to compete again....they can when they want to. They have nit had to in the last 5 years when people om mass moved to the majors for security during the GFC - this and Govt deposit guarantee literaly handed the majors 'profit taking' on a plate.

  • by Mega GC 20/03/2013 10:03:46 AM

    What a crock. How about a party that looks at parliamentary pays, super and benefits. Adrian Bradley has found a baton and wants to get on the band wagon

  • by Keith B 20/03/2013 10:08:05 AM

    I don't know what this guy is taking but sure wish he would share it around! What rubbish to build a party platform on a gouging tax!.

    Thank goodness our banks do perform well unlike our trading partners where they are constantly being bailed out by taxpayers.

    If you are so upset with the profits of big banks' go and buy their shares!