The Turnbull Government is getting tough on what we pay for financial services.
Among their promises, outlawing high charges on credit card use and forcing banks to hold more reserves.
Today’s announcement covered most of the recommendations of the Murray Review of Australia’s financial system.
Mary-Clare Simpson reports.
A shakeup of Australia’s financial system has been promised for years.
Today, the Turnbull Government delivered.
Unfair credit charges will be banned.
Workers will have greater choice of super funds.
And banks will have to retain extra funds, to protect against any future GFC event.
Mr Turnbull wants to ensure trust in the financial system.
Malcolm Turnbull, Prime Minister: “All our banks, insurance companies, superannuation, the whole system, the whole industry, is safe and secure.”
The Australian Competition and Consumer Commission will oversee credit charges, to ensure customers pay only what the transactions cost business.
Scott Morrison, Treasurer: “Surcharge fees are typically between one and two per cent for major cards, bank cards that is. And, the surcharge for these also extend beyond that for two to three per cent for some of the other cards.”
And there’ll be particular scrutiny on the top end charges.
Scott Morrison, Treasurer: “But in some cases in particular industries, surcharges can be upwards of ten per cent.”
Superannuation will also undergo reform and workers will have more choice of default funds.
Scott Morrison, Treasurer: “Someone’s superannuation is their money, it’s not the funds money, it’s not those who run the funds money, it’s the workers money.”
It’s hoped consumers will benefit from greater competition in the finance industry.
But the Australian Bankers Association has already warned, they’ll pass on any extra costs to customers.
Mary-Clare Simpson, QUT News.