Banks ready to jack up rates
THE big banks are grudgingly preparing to make their first bank levy payment in September, raising questions about potential interest rates as early as next month.
As the Turnbull Govern- ment aims to introduce the controversial Bill into Parliament on Monday or Tuesday, the bank lobby has formally written to key Senators urging them to heavily scrutinise the levy and push for the new tax to be junked once the Budget returns to surplus.
The Government has vowed to lock its six-basispoint bank tax into legislation, meaning that future increases would have to pass both houses of Parliament.
The clarification by Prime Minister Malcolm Turnbull comes a day after ANZ chair- man David Gonski sent a letter to shareholders pushing for such a move.
Capping the tax at the prescribed rate is a controversial move, with some affected parties this week questioning whether it has been levied accurately. An incorrect calcu- MOST people know it as frisbee-throwing.
But for flying disc fanatics like Tristan Glover, it’s a sport known as “ultimate”.
The Australian Beach Ultimate Championships are being held at Coolangatta this weekend, catching the last of what has been a run of mild weather.
Conditions along the coast were fine and sunny yesterday, with the temperature at Surfers Paradise expected to reach 24 degrees today.
But Bureau of Meteorology forecaster Rick Threlfall said cooler conditions are on their way. “All the way around the southeast, temperatures will drop away from around the middle of next week,” he said. lation could carve a gaping hole in the Federal Budget.
Australia’s big four banks, which will all be subject to the tax, estimate revenue from the impost will fall well short of government projections.
But Mr Turnbull yesterday said he would not increase the tax and that it would be enshrined by legislation. It is understood the first payment will be due on September 30.
The Reserve Bank will have the chance to raise rates at its meeting on June 6, however, it is unlikely they will shift the cash rate from 1.5 per cent.