Posted September 13, 2018 07:05:47 The banking industry has a bad reputation and the government has been accused of “soliciting” money from the banking sector for years.
But the banking industry says the public has a right to know how the money is spent.
The Federal Government says the financial institutions that handle the billions of dollars in deposits and withdrawals each day have “ample control over how their funds are used”.
But in an effort to stop the money being laundered, the Government has introduced the Financial Transaction Tax (FTT) which will levy a maximum 20 per cent GST on any transaction over $10,000.
And in the face of a raft of scandals, some members of the banking and financial services industry have launched an unprecedented public campaign against the FTT.
“The Government has no intention of changing the existing structure of the financial system or the FTS itself,” John Daley, CEO of Australian Banking Group, said.
“We know the FTF is flawed.
It’s not working.”
Mr Daley says banks will need to have sufficient “sufficient information” to make decisions about whether they should be able to keep their money.
“Our clients expect us to make sure they have the information that they need,” he said.
The FTT is expected to cost the Government $300 million a year.
The Financial Services Council of Australia has said the tax will be “a fairer and more transparent system for financial institutions” but it also warns it will be expensive and may lead to financial stability problems.
The ABC understands there are fears that the FTM will be applied to all types of transactions, not just cash, but also cheques, electronic money transfers and online transactions.
The Opposition says the FTA will result in a “fraudulent, inefficient and discriminatory” tax.
“This is the sort of tax that’s been applied to other parts of our economy, not only the financial sector,” Opposition Leader Bill Shorten said.
The Financial Transaction Policy is being debated in Parliament, where a motion to end the FTP was passed by the Business, Innovation and Employment Committee on Thursday.
Mr Shorten says the Government is “taking away our ability to control our money” and will not be able “to control the behaviour of our financial institutions”.