21 April 2016
Media Release - #2016043, 2016

Bowen’s big boast on banks fails to survive a day

Yesterday the shadow Treasurer Chris Bowen was boasting that banks would ignore the Government and pass on the costs of the user pays funding model for ASIC to consumers. He said:

“Scott Morrison said today that he would get very, very cross with the banks if they passed it on. He’d give them a good talking to, he’d wave his finger at them no doubt, if they pass this levy on. That has about as much credibility as anything Scott Morrison says, which is absolutely none. The banks are entitled to conclude that won’t be his view tomorrow, because his view on everything else changes from day to day.” (Doorstop Interview, 20/04/2016)

Today, following my statement yesterday and after meeting with the banks this morning, together with the Prime Minister and the Assistant Treasurer, the banks have confirmed to me that they will not be passing on the cost of the ASIC levy to their customers and have confirmed their position publicly; 

  1. Commonwealth Bank says no to passing on the cost of the ASIC levy: “CBA will not pass on the ASIC funding levy to our customers.” @CBAnewsroom
  2. Westpac says no to passing on the cost of the ASIC levy: “We certainly have no plans to increase rates based on [the] announcement.” Westpac spokesman
  3. NAB says no to passing on the cost of the ASIC levy: “NAB confirms it will not be passing on any additional costs to customers relating to the new funding arrangements for ASIC.” @NAB
  4. ANZ says no to passing on the cost of the ASIC levy: “ANZ comments on additional ASIC regulatory costs: “Passing on those costs on to customers is not something we are looking at.” Paul Edwardes [Head of Corporate Affairs, ANZ] @pgtedwardes

Mr Bowen’s big boast on banks failed to last a day.  We have done what we said we would do and got the result we said we would get.

We are sending a $121 million bill for beefing up our cop on the beat, through increased support for ASIC, to the banks and they have confirmed they will not be passing that cost on to consumers.