AND NOW: Australia Unveils Levy On Bank Deposits … But Don’t Worry Because This Is ‘Not A Crisis, But An Economic Transition’

Australia unveils levy on bank deposits (BBC News, Aug 2, 2013):

Australia has unveiled a levy on some bank deposits to raise money towards a fund aimed at safeguarding against a banking collapse.

Deposits up to A$250,000 will have to pay a levy of 0.05% from January 2016.

It will be imposed on banks and not account holders. But banks have warned costs may be passed on to customers.

The move comes as the government warned of slower economic growth and a much bigger budget deficit than it had previously forecast.

In its updated economic statement, released by Treasurer Chris Bowen, the government said it expected a deficit of A$30bn ($26.7bn; £17.8bn) in the current financial year, compared with its previous projection of A$18bn.

‘Not a crisis’

Read moreAND NOW: Australia Unveils Levy On Bank Deposits … But Don’t Worry Because This Is ‘Not A Crisis, But An Economic Transition’