“It is making sure the banks give back to us and that is the attitude you’ll see from a Shorten Labor government,” she warned.
As well, Labor, if elected, will require the regulator ASIC to approve farm foreclosures and it will review all cases in the past five years where default interest has been charged. It will double the maximum compensation of $2 million for small businesses to $4 million for farmers.
One senior banking executive said the sector was becoming increasingly frustrated with the levies. The big four plus Macquarie already pay more tax per year than the rest of the ASX200 combined. This includes the $1.5 billion-a-year bank tax levied by Scott Morrison in 2016 on top of their corporate tax.
Labor has already pledged a levy to fund a body to oversee its expanded compensation fund and now had proposed another levy for its Banking Fairness Fund which will also provide financial counselling services.
“Yes, they’re very profitable businesses … but it’s not like we’re avoiding tax,” said the executive. It was also pointed out that the banks already have significant domestic violence programs to help customers who are victims.
But one senior executive said the biggest source of alarm was the farm policy as well as the retrospectivity of the compensation scheme.
This would add to an already increasing reluctance to lend money, especially to high-risk customers like farmers.
“No one likes to part with money but the biggest concern is credit drying up for individuals, small business and farmers,” said the executive, who did not want to be identified.
Another big four executive was quoted as telling colleagues: “I don’t think we’re in a position to fight back on this but we need to reassess our agri book.”
On domestic violence, the Commonwealth Bank spent $18 million last year on prevention and support measures. Its in-house program has helped 6000 people in the past two years.
The program offers services including access to independent specialist trauma counsellors, financial assistance, safe establishment of bank accounts and telephone support to ensure appropriate communication with family and friends.
Of those people helped, almost 95 per cent were women, with half of the total aged between 22 and 35 and a third between 35 and 50.
from Trendy Newses https://ift.tt/2tLHzEy
0 Comments