Australian banks rely on liquidity from foreign lenders and that market is about to tighten and has been tightening.
So many factors in play. The exposure of the Australian banks to the housing market is colossal by international standards. Around 65% I last heard. There is an echo effect of the money and students China was sending us, being cut back.
I would think overall the Labor partys policy on phasing out a tax benefit is going to add not much at all to those significant market headwinds by comparison.
In that respect, Treasury is correct.
(BTW hilarious nic....so I sometimes find it hard to take what you say seriously...)
