Budget measures no substitute for a Banking Royal Commission

10 May 2017

Despite overwhelming evidence of the need for a Banking Royal CommissionMalcolm Turnbull and Scott Morrison have continued to protect the banks from the proper scrutiny a Royal Commission would provide.

If the Government thinks that by announcing a package of half measures in an attempt to address widespread community concern over banking conduct will reduce the calls for a Royal Commission, they are wrong.

In terms of some of the specific measures the Government will need to explain how they will ensure the Major Banks Levy is not simply passed on to banking customers to pick up the tab.

Given the tight fiscal circumstances, Labor will support the Major Banks Levy.

In terms of the proposed new complaints authority for banking customers,simply rebadging existing complaints bodies will do nothing to stop the wrongdoing that has led to thousands of Australians being ripped off by their banks or financial advisers.

Labor will consider all the banking measures in this budget but nothing will change our view that there is no substitute for a Banking Royal Commission.

Only a Royal Commission will get to the bottom of the cultural and systemic issues in the sector that have led to thousands of Australians being ripped off and having their lives ruined.