THE tax treatment of deposits should be reformed to help wean Australia's banks off overseas funding, National Australia Bank finance executive director Mark Joiner said today.
“Increasing use of offshore markets makes us vulnerable to shocks and is progressively increasing our cost of funds … and so customer interest rates,” Mr Joiner told a business lunch in Melbourne.
Mr Joiner said the tax treatment of deposits should be part of the federal government’s tax forum in October.
“Better tax treatment for Australian savers would be good news for savers, good news for borrowers and good for Australia,” he said.
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