At least this is one thing I don;t have to worry about. LOL.
Although if anyone would like to lend me some, I would be very appreciative.
A "DEPOSIT tax" on millionaires being planned by the Federal Government will send interest rates higher, Opposition Leader Malcolm Turnbull has said.
In secret advice to the Treasury from the Reserve Bank, published today in The Australian, governor Glenn Stevens floated a punitive insurance fee of up to $20,000 per $1 million for wholesale bank credit.
In Parliament, Wayne Swan disclosed that the Government was proposing the fee to pay for the taxpayer-backed guarantee, which has been estimated to potentially cost hundreds of billions of dollars.
However the Government has not decided if the banks or the account holders will be subject to the fee.
The Opposition has called the fee a "deposit tax" and accused the Government of bungling its guarantee plan. "It will raise billions of dollars of new revenue for the Government, it will have the effect of increasing banks' costs, it will put upward pressure on interest rates," Mr Turnbull said on ABC radio this morning.
In his advice to Treasury, Mr Stevens warned that the "more the (deposit) guarantee is used, the bigger the problem" in financial markets.
Mr Turnbull has said there has been a crisis in Australia's money markets for two weeks.
"The government introduced an unlimited guarantee which has caused money, not just small depositors, but large depositors to stream out of non-guaranteed institutions and funds into the guaranteed ones.
"This Government is out of control, they're making financial policy on the run."
Government MP James Bidgood said earlier that Mr Turnbull was the "Gordon Gecko" of the Liberal Party.
"What is the Liberal Party policy?" he said. "Where are the guarantees, because it seems to us that the Liberal party policy is just blowing in the wind, whichever way the wind blows is the way the policy goes.
