BankVic supports COBA’s campaign against the Federal Government’s proposed deposit tax
BankVic supports the Customer Owned Banking Association (COBA) campaign against the Federal Government’s proposed deposit tax. COBA launched the Save Your Savings campaign on 15 June calling on the Federal Government not to go ahead with a deposit tax.
“The deposit tax is anti-saver because it will hit Australians trying to save for their future in the simplest and safest way,” COBA CEO Mark Degotardi said.
“Our research shows that two-thirds of people understand that current returns on savings accounts barely match inflation but only one in five Australians realises that savings accounts are heavily taxed compared to other investments”.
“Most people just don’t know that savings accounts are so heavily taxed and around a third of people think savings accounts are taxed in the same way, or more favourably than, property, shares and super.”
COBA commissioned independent polling to gauge attitudes to saving and the proposed tax. The Essential poll of 1,000 people found:
Just 37% believe they have enough savings to meet their future needs;
More than three quarters (79%) oppose the deposit tax; and
73% believe if the tax comes in, a future government is likely to increase it.
BankVic CEO Stephen Capello agrees with the sentiment, “As savings accounts are already heavily taxed we are against implementing this tax as we believe it will penalise our members who are wanting to save as well as impinge on smaller financial institutions like ourselves who exist to serve our members.”
“The deposit tax would hit savers when they are getting very low returns due to record low interest rates and an already unfair tax regime,” Mr Degotardi said.