Australia’s federal budget promises levy on major bank liabilities

Australia’s major banks are set to pay more for their wholesale funding – both short and long term – under a major-bank levy introduced by the 2017/18 Commonwealth budget. The government estimates the levy, which amounts to 6 basis points on all major-bank liabilities excluding additional tier-one instruments and most deposits, will raise A$6.2 billion (US$4.5 billion) over four years.