What the government is doing is essentially providing insurance, if something goes wrong they are going to have to pay out a lot of money. Name me a private company that gives out insurance for free.

Also good to keep in mind that this is just 5 basis points, that’s absolutely miniscule. Say you had $100,000 in a bank account at 3% interest. Over a year you would earn around $3000 in interest, and pay deposit guarantee levy of $50. $50 on $100,000 is nothing. Even if you had just $10,000, that’s only $5 in deposit guarantee.

And this isn’t going on your tax return by the way, the bank will do it. Who knows, it’s kinda competitive out there especially with the high interest accounts. It might end up being even less to you.

Plus I should add, the IMF, RBA and a lot of major finance organisations are saying this is the way to go, they are recommending all nations do this so that the banks can be bailed out with their own money should GFC mk 2 arrive.

So all in all, I’m not at all fussed about the bank levy, it’s like 5c in $100.00. I’m honestly more worried about the 1.5% tax on businesses Abbott is planning to impose on all businesses, or that Direct Action plan of his which Turnbull said would cost tens of billions of dollars on top of what has already been budgeted.