Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to the deposits tax announced by the Treasurer a moment ago, which he said will apply to all banks’ deposits over $1 million whether the banks or the depositors want it or not. Why is this deposit guarantee compulsory and will this deposit tax be the same regardless of the bank’s credit rating?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

It is not a deposit tax. It is a fee to reflect a commercial reality, which will reflect the fact that there is a government guarantee—and I did not say necessarily a million dollars; I said a million dollars or above. That is what I said.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The question has been asked and it is being responded to.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

These commercial arrangements are being worked through by the RBA and by the Treasury. They will be published in good time. We are going through consultation with industry and it will reflect commercial reality. It reflects the fact that the government has a determination to provide a comprehensive guarantee. What those opposite simply do not understand is how the world has changed so much in the last three weeks. When we moved to put in place this comprehensive guarantee, with the full support of the Reserve Bank, with the full support of the Treasury, the opposition said that they were going to give us their full support. Now, today, they have walked away from it altogether. Indeed, they have got another policy. It is a policy by the hour. They are now suggesting in this House that there ought to be a guarantee on non-deposit investments. They want to walk into this House and talk about the potential liability of our guarantee.

Our guarantee is responsible. It was put in place because of what was going on internationally. Governments elsewhere in the world were making very substantial guarantees to their banks and if we had not acted there would have been severe consequences for the Australian banking system. But those opposite are so utterly irresponsible. They want to come into this House and trash the guarantee. Well, they can do that, but this government stands for good policy. We stand for protecting the Australian banking system. We stand for ensuring that its stability can mean over time that households and businesses receive lower interest rates, and they are starting to see the benefit. I guess that is what really rubs up against the Leader of the Opposition. He only sees this as a personal opportunity. He does not see this as a chance to strengthen the national interest. This government will defend the national interest all of the time.