Malcolm Roberts (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

My question to the Minister for Finance, Senator Gallagher, follows calls from concerned constituents and relates to Labor's bank deposit guarantee element of the Financial Claims Scheme. Minister, can you assure constituents, and assure the Senate, that in the event of banking failure every cent in every Australian's bank account will be guaranteed under the deposit guarantee scheme?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I welcome the opportunity to talk to the Senate about the strength of our banking system, because I think it is important to reassure Australians that we have a very strong, well-regulated, well-led, well-capitalised banking system with good liquidity. I think that should provide reassurance to the Australian people about the system that we have in place. It's been strengthened considerably in the years since the GFC and since the banking royal commission. It's obviously a vital and important sector for the overall functioning of our economy.

I would also say that the Treasurer and the Assistant Treasurer meet regularly and are getting updates regularly on the global situation and on what we have been seeing happening overseas. This includes meeting with the regulators of our system to get up-to-date advice.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Roberts, a point of order?

Malcolm Roberts (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I asked specifically for the minister to assure constituents that, in the event of a banking failure, every cent in every Australian's bank account will be guaranteed. I'm not interested in overseas. I just want to know about that, for every cent.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Roberts. I believe the minister is being relevant to your question.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I only briefly talked about overseas. I was giving that as additional reassurance. In the initial part of my remarks, my answer was about the strength of the Australian banking system, which is where Australians have their deposits and have their money. I was providing that reassurance that Senator Roberts was seeking about the strength of the banking system and the fact that we are taking advice. In fact, the Treasurer and the Assistant Treasurer are getting briefings regularly about the situation overseas, because that directly links to your question, which relates to some of the concerns that we have seen in banks overseas. We are connected in a global world, so we do keep an eye on that in order to keep an eye on what is happening in Australia. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Roberts, your first supplementary question?

Malcolm Roberts (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I note that twice the minister has not assured people that every cent in every Australian bank account will be guaranteed. Minister, what is the total figure for depositors' funds in Australia, and, of that, what percentage does the deposit guarantee scheme actually guarantee?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I don't have those details front of mind or in my papers. I will come back to the senator and the Senate with an update. If I can do that during question time, I will. But I will say that when we have faced challenges in the banking system in Australia—which we are not facing now—the government, and I presume this would be on either side of the political fence, would act quickly to respond to any concerns that we saw in the banking system, which goes to your question about guaranteeing deposits. But we are not in that situation, and that is why my answer to your original question was about the strength of the banking system here, and the fact that we are keeping a close watch on what is happening internationally in case there are any impacts that come our way from it.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Roberts, a second supplementary question?

Malcolm Roberts (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Since 2008, the deposit guarantee scheme has been capped at $20 billion per bank and $80 billion in total. Minister, do you have $80 billion sitting there ready to go, and, if not, how much is immediately accessible to the scheme and how long will it take for the full guarantee amount to be available?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In the event that we needed to respond, I can guarantee that the government would move quickly to ensure the stability and security of Australia's banking system. But that is not the situation we are in. The regulators advise us that the banks are well capitalised with good liquidity. They are well led, they are profitable and they are engaged with regulators all the time. The government remains absolutely aware of the issues overseas and is engaged with the banking system, the regulators and other stakeholders to ensure that remains the case. If there were any concerns, the government would respond quickly.