The Australian Bankers’ Association (ABA) has called for the “usual consultation and policy processes” prior to the implementation of the bank levy contained in last Tuesday’s federal budget.
In a submission to Treasury on the major bank levy, the ABA said the budgetary measure is "rushed" and "not in keeping with the government's own best practice guidelines".
The levy would impose a tax of 6 basis points on the assessed liabilities of the 'big four' and Macquarie.
In its submission, the ABA called on Treasury to conduct a detailed regulatory impact status before the bank levy bill is introduced to Parliament.
In addition, the ABA repeated its calls for increased modelling on the economic and taxation impacts of the proposed levy.
The bank lobby group also pointed to the short consultation period on the draft legislation, which is set to be finalised before the bill is introduced to Parliament on 31 May 2017.
"The ABA are alarmed with the truncated time for consultation, as well as the fact there was no prior consultation, nor will exposure draft legislation be released for public comment," said the submission.
"The ABA believes there is further opportunity for consultation as the tax will only be levied for the first time on 30 September 2017."
The ABA also argued for a more "co-ordinated consultation" with all the affected regulators, including APRA, ASIC, the AOFM and the RBA.
"For example, the ABA believes it is crucial that Treasury and APRA be given adequate time to assess if the bank levy is consistent with developments in prudential regulation such as the unquestionably strong requirements and Total Loss Absorbing Capital (TLAC)," said the submission.
APRA will soon be handing down new prudential standards around remuneration following the damning results of an inquiry into 36 of Australia...
EXCLUSIVE Now that he’s secured his leadership, Prime Minister Scott Morrison has a major opportunity to secure the future viability of t...
A report from prudential regulator has found that CBA is not the only institution that suffers from an ill-defined culture and hazy account...