"I find it difficult to imagine any Aussie bank can create...

"I find it difficult to imagine any Aussie bank can create money"

This is called "Fractional Reserve Banking" and is the system most banks use around the world.
http://en.wikipedia.org/wiki/Fractional-reserve_banking

I'm not sure the capital requirements for banks in Australia but generally it is 10%. Therefore, if a bank receives $100k in bank deposits or has $100k of it's own capital the government via the Reserve Bank allow the bank to loan 10 times that amount to customers...ie $1million.

The $900k is a book entry in the banks ledgers and doesn't represent real money.

Therefore they have invented $900k of money which they charge customers for. So while they pay 7% to the depositer for the $100k (ie $7k per year) they charge sy 9% on the $1mill and get $90k.

It is a license to print money that is gifted to them from the government via the Reserve Bank.

On top of that they obscenely charge fees for the priviledge of doing any sort of business or transaction with them.

Every bank license should come with the understanding that they play nice because they are getting the biggest free kick in town.