Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Hansard source

then they should take their business down the street to their local customer-owned bank or credit union. There are many good ones. I know there are many fine ones in your electorate, Mr Deputy Speaker, as well as mine.

This deliberate policy decision is designed so that the affected banks will absorb the levy, as they should, rather than pass it on to their customers. So whilst those opposite talk about how deeply they feel for consumers, they do not match the serious action we are taking to ensure they are protected. Our plan, unlike that of the Labor Party, does not punish savers or depositors, such as pensioners, as Labor's proposed deposit tax did. Those opposite wanted to tax every single account holder in the country, regardless of the company they banked with, and included pensioners and ordinary account holders. Instead, ours is a modest contribution from the big five banks and is just 6c in $100 of specified liabilities. It is only on the liabilities of those institutions with more than $100 billion. The levy will not apply to deposits protected by the Financial Claims Scheme or mortgages or additional tier 1 capital. It is a fair contribution from those banks, which Australians backed during the global financial crisis and which are posting profits of more than $30 billion a year after tax. This levy ensures that Australians are compensated for the banks' risk, there is increased competition in the bank sector and customers are treated equitably. We are enshrining fairness in Australia's financial sector. We are creating a one-stop shop, known as the Australian Financial Complaints Authority, where consumers and small businesses can go to resolve their disputes with banks and other financial institutions. There will be a new banking executive accountability scheme to make sure the pay of very senior executives at the banks reinforces their obligation to act in the interests of consumers. Getting things done—that is what this government is doing. In addition to this, the ACCC will have the powers and resources to undertake monitoring of residential mortgage pricing. It will require relevant banks to explain any changes, or indeed proposed changes, to fees, charges or interest rates.

At the heart of everything this government does is the desire to get the job done for Australians and to take action, real and meaningful action, to protect consumers. We are taking action to make that a reality. Only this government will hold the banks to account, have them pay their fair share and level the playing field in Australia's banking sector. Only this government backs small business the way it wants to be backed. The member for Perth talked about a $2 million threshold. He called me sunshine. Well, we are allowing the sunshine to come in—we are making the threshold $10 million. If you are any good with your numbers, Member for Perth, $10 million is five times what your side of parliament proposed. So it is a $10 million turnover threshold, the tax rate is going down to 27½ per cent—the lowest it has been for many, many decades—and the instant asset write-off is being extended by 12 months. It is now available to far more businesses than ever would have been looked after by those opposite. If ever there was a government with the back of small business, it is this one. (Time expired)

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