4 Aug 2013

Bank deposit levy planned by Australia

7:06 am on 4 August 2013

Australia has announced a levy on some bank deposits to raise money towards a fund aimed at safeguarding against a banking collapse.

Deposits up to $A250,000 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 BBC reports the federal government now expects a deficit of $A30 billion in the current financial year, compared with a previous projection of $A18 billion.

Treasurer Chris Bowen said on Friday a revenue shortfall of A33.3 billion is forecast over the next four years.