Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

This is a very important measure and yet another example of how those opposite do not understand how important competition is and how much saving a few dollars can really matter to families. But, in the case of mortgages, it can be a lot more than a few dollars. Customers have to have the capacity to shift their account. They have not had the capacity to easily do it up until now. Banks will be compelled for the first time to provide all of those details and facilitate the opportunity for a customer to move their account.

The member asked about exit fees. Did those opposite ever do anything about exit fees? No. Did they ever once mention the phrase ‘exit fees’? No. What we have done is we have had the whole question looked at by ASIC. We have for the first time got a handle on what is actually happening with exit fees. As a consequence, we are now getting a new product on the market which does not have exit fees. That is something that never happened under those opposite. Banks will now be compelled to provide for their customers all of the details so that people can easily move their transaction accounts.

Furthermore, if banks do not participate according to the code that they have signed up to, they will be liable for compensation—the first time that has ever happened—through the Financial Ombudsman Service. We will bring the full power of competition to bear so that customers can more easily move their accounts—something that never happened when those opposite were on the treasury benches.

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