Major banks will not saddle consumers with ASIC levy costs

by John Maguire22 Apr 2016
All four of Australia’s major banks have ruled out passing on to customers the costs of the recently announced ASIC levy.

The government has raised the levy that banks must pay to the corporate regulator by $121 million, in a move to ensure that banks and financial institutions are responsible for funding their own regulatory body. The government will also commit an additional $6 million in taxpayer funds to ASIC.

ANZ was the last of the four majors to confirm it would rule out passing on the costs of the levy through increased interest rates, joining Commonwealth Bank, NAB and Westpac.

Westpac, who quickly came out in favour of the reform, said in a statement, “We certainly have no plans to increase rates based on [the] announcement."

Confirmation that the four banks would not increase rates to fund the levy comes following treasurer Scott Morrison's comments that he would be “furious” should any banks attempt to pass the costs onto customers.

Senator Sean Edwards, chair of the Senate standing committee on economics, reiterated Morrison’s stance, saying, "I've been in touch with a number of the banks; they're very keen to respond to what the Government has put forward.

"I would think that shareholders of all of those banks, which are basically mums and dads of Australia, are very keen to ensure that they do the right thing by all Australians."



  • by Really? 22/04/2016 9:01:10 AM

    Because they've already decided to pass it on to Brokers. Westpac announced within 24 hours that they are reviewing commissions. My guess is their share of the $120m will be raised from us.

  • by SEQ Broker 22/04/2016 9:09:57 AM

    If commissions get targeted then I will be targeting my federal member. Banks have a nerve don't they. A blind man riding by on a horse can see that they wont absorb any of the costs for the extra ASIC funding - which the banks themselves caused! Shareholders rule the day so much so that it is evident that ethics and morality has seen only lip service from the big banks for a decade or more. I am anti ALP. They want to spend our grand children's inheritance on their criminal mates at the CFMEU - but in this case they could be right, a royal commission may be required.
    Lastly call me a cynic but the banks get charged the extra ASIC funding and then they put the rates up independently of the RBA - thats worth a lot more than a measly $120M.

  • by OzBoy 22/04/2016 10:00:26 AM

    If Westpac do look at our commissions again and lower them for what ever reason then we as a group need to understand that we are partly responsible . Westpac have a track record for this type of action yet we as brokers continue to give them more business than any other lender, vote them number 1 and continually support them across the industry. If we as a group had done something constructive when they lowered commissions before, then the whole industry would have seen the results, but what did we do, we actually upped our support.

    If we reward bad behaviour we then cannot point the finger when it continues. Time to take responsibility for our own actions and their consequences. No more excuses.

    PS: Written one Westpac loan since 2007.