Hockey's deposit levy should only apply to big 4 banks: Greens

Greens Deputy Leader and Finance spokesperson Adam Bandt MP today said Treasurer Joe Hockey's proposed levy on bank deposits may get passed straight on to consumers, and instead has proposed an alternative model where the levy would be restricted to the big four banks.

"The Greens are concerned that a levy on all bank deposits could be passed directly onto everyday consumers if the levy is simply applied across the board to all banks," Mr Bandt said.

"The Greens propose an alternative model that would see a levy on bank deposits only apply to the big four banks, which would help level the playing field between big and small banks and wouldn't see the levy simply passed on to consumers."

"Competitive pressure would prevent the big four from passing the levy on to customers, as a customer could always go down the road to a smaller bank not subject to the levy."

"The big four currently get massive implicit subsidies from the public and government because they are 'too big to fail'. With the big four enjoying record profits off the back of taxpayer support, we know that they can afford to pay this small impost."

"The Greens will look at any proposed legislation closely and will seek support from both the government and Labor for our model."

Media contact: Adam Pulford, 0429 109 054