The Government announced major changes to the banking sector in the 2017-18 Budget, including:
• A tax of 0.06% on the liabilities of the four major banks plus Macquarie.
• Forty per cent of a banking executive’s variable remuneration must be deferred for at least
• The Australian Prudential Regulatory Authority (APRA) will be given powers to require banks to change their remuneration policies.
• The Australian Competition and Consumer Commission (ACCC) will undertake a residential mortgage pricing inquiry until 30 June 2018.1
Additionally, the Prime Minster said the ACCC would be watching the banks “very, very closely” should they decide to pass the cost of the bank tax onto borrowers.