A new campaign is underway to defend Australians trying to save, with new research showing many Australians fear they don't have enough savings to meet future needs.
The Customer Owned Banking Association today launched the Save Your Savings campaign calling on the Federal Government not to go ahead with a deposit tax.
The key messages of the national TV and radio campaign are that the proposed tax is anti-saver, anti-competitive and against the recommendations of the independent Financial System Inquiry (FSI).
"The deposit tax is anti-saver because it will hit Australians trying to save for their future in the simplest and safest way," COBA CEO Mark Degotardi said.
"Our research shows that two-thirds of people understand that current returns on savings accounts barely match inflation but only one in five Australians realises that savings accounts are heavily taxed compared to other investments.
"Most people just don't know that savings accounts are so heavily taxed and around a third of people think savings accounts are taxed in the same way, or more favourably than, property, shares and super.
"This perception is plain wrong. The Government's own tax review discussion paper points out that savings accounts are much more heavily taxed than property, shares and super."
COBA commissioned independent polling to gauge attitudes to saving and the proposed tax. The Essential poll of 1000 people found:
• Just 37% believe they have enough savings to meet their future needs;
• More than three quarters (79%) oppose the deposit tax; and
• 73% believe if the tax comes in, a future government is likely to increase it.
"The deposit tax would hit savers when they are getting very low returns due to record low interest rates and an already unfair tax regime," Mr Degotardi said.
Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.
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