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Thread: Australia unveils levy on bank deposits

  1. #1

    Australia unveils levy on bank deposits

    Australia has unveiled a levy on some bank deposits to raise money towards a fund aimed at safeguarding against a banking collapse. Deposits up to A$250,000 will have to pay a levy of 0.05% from January 2016.

    It will be imposed on banks and not account holders. But banks have warned costs may be passed on to customers.
    The move comes as the government warned of slower economic growth and a much bigger budget deficit than it had previously forecast.
    In its updated economic statement, released by Treasurer Chris Bowen, the government said it expected a deficit of A$30bn ($26.7bn; £17.8bn) in the current financial year, compared with its previous projection of A$18bn.
    'Not a crisis' Australia's economic growth over the past few years has been powered mainly by the success of its resources sector.
    Continue reading the main story “Start Quote

    Australia is undergoing an economic transition”
    End Quote Chris Bowen Treasurer, Australia
    Demand from countries such as China resulted in a commodities boom - which helped sustain the country's growth through the global financial crisis.
    However, growth in those economies has slowed recently, driving down demand for commodities as well as their prices.
    That has not only affected Australia's economic growth but also hurt the government's tax revenues.
    On Friday, the government lowered its growth forecast. It now expects the economy to grow by 2.5% in the current financial year, down from its previous projection of 2.75%.
    It warned that slowing economic growth was likely to result in a rise in unemployment.
    "Australia is undergoing an economic transition. Not a crisis, but an economic transition that needs careful economic management," Mr Bowen said.
    "This transition has been brought about by the China mining investment boom coming to an end."
    He added that as expansion in the mining sector slows, "non-mining sectors of the economy will need to lead growth in future".
    Revenue shortfall The government said that the faster-than-expected drop in commodity prices, coupled with other factors such as lower growth in wages, would also hurt its revenues.
    It has forecast a revenue shortfall of A$33.3bn over the next four years.
    The government has announced new measures in an attempt to boost its revenues.
    This includes a tax rise on cigarettes. Prices will rise by 12.5% a year for four years starting from 1 December.
    The government said it expected to raise A$5.3bn from the increase.
    It also announced changes to a fringe benefit tax applicable to cars, which it said would help raise another A$1.8bn.
    BBC News - Australia unveils levy on bank deposits

    It looks like the Cyprus style thief start to be a blueprint for other countries bank system, in Australia, deposits up to A$250,000 will have to pay a levy of 0.05% from January 2016. By the way, Cyprus banks took an outrageous 47,5% above 100,000 euros deposit.

    I am wondering what are they doing here in US and other countries?

  2. #2
    I have not heard anything about the government planning to steal bank accounts here in the USA, but several Democrats have proposed confiscating everyone's retirement accounts and using them as a national retirement fund. As one Democrat put it, "401k accounts are unfair to the poor." Huh?

    IMHO, if the US government tried to confiscate everyone's 401k and IRA account, there would probably be a multimillion man march on Washington DC with pitchforks and flaming torches.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  3. #3
    They are already limiting ATM withdraw to 300 euros with whatever cards and if you want more than 1200 euros cash you have to tell the bank agency 48 hours in advance that you will withdraw your money at the window in France.

    One thing very important is going to happen in Europe before the end of 2013 or beginning of 2014 is another economic crash.

    There is a skyrocketing shoplifting, robberies, etc in France with delinquent having Kalachnikov and hands (Not semi auto you can buy here legally, but fully automatic). And our politicians are completely absent like usual when things are extremely threatening. Many independent sources in France said that the revolution is probably coming, which what relatives over there confirmed.

    To add insult to injury, the EU is working for more austerity. Next month is going to heat up pretty badly.

  4. #4
    DUH PEOPLE~!
    The US government (actually the FDIC) has been levying a fee on ALL banks, based on deposits, to fund the bank buyout fund to protect depositors, etc.
    Nothing new!

    Go back to your conspiracies.

  5. #5
    Quote Originally Posted by iowadawg View Post
    Go back to your conspiracies.
    Which conspiracies are you talking about? I was talking about Australia not the US

  6. #6
    Quote Originally Posted by iowadawg View Post
    DUH PEOPLE~!
    The US government (actually the FDIC) has been levying a fee on ALL banks, based on deposits, to fund the bank buyout fund to protect depositors, etc.
    Nothing new!
    That is not at all the same as taxing deposits directly, and especially based upon the amount in each account. In Australia it is a tax that exceeds the prevailing interest rates, which means it reduces the amount in each account.

    They would have a real difficult time doing something like this in the USA--unless the Dems regain control of Congress 2014. I would not put anything past Pelosi and gang, teamed up once again with Obama and Reid.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  7. #7
    Deposits up to A$250,000 will have to pay a levy of 0.05% from January 2016.
    It will be imposed on banks and not account holders. But banks have warned costs may be passed on to customers.

    Still same as in USA.
    Banks do pass this cost on in the form of higher fees for loans, less paid out on interest on accounts.
    Account fees at some banks (you pay for having an account), etc.

  8. #8
    They are already limiting ATM withdraw to 300 euros
    per day I suspect! That should be OK for normal people.

    How much can I withdraw a day?
    • Daily limit of S$3000 for Citibanking customers
    From: https://www.citibank.com.sg/gcb/othe...withus_atm.htm

  9. #9
    Quote Originally Posted by iowadawg View Post
    Deposits up to A$250,000 will have to pay a levy of 0.05% from January 2016.
    It will be imposed on banks and not account holders. But banks have warned costs may be passed on to customers.
    You are right. I didn't read all of the details in the article. I don't know how the banks are going to pass that on to their customers, because if Australian interest rates are similar to USA interest rates, the levy exceeds the interest rate paid on savings accounts. The banks would have to start charging a fee for keeping money in an account, or raise interest rates on loans, which damages an already fragile economy.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  10. #10
    And why get excited by ATM limits?
    Already have that and been for years here in the USA.

    Usually a simple call or visit to your bank and you can get your limits raised.

    Depends on your customer status, etc with your bank.

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