Federal Budget 2019: $607m to fix banking and finance

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“I love Budget day,” senior economist Matt Grudnoff told YourLifeChoices. “It’s like Christmas to an economist.”

You’d be forgiven for thinking that it was just the numbers that tickle Matt’s fancy, and you’d be right to an extent.

“It’s like getting new toys to play with,” he said.

But the real reason he loves Budget day is because “it’s the one day of the year that you get to see if a politician really cares about something”.

“A politician can say they care about something or will do something about a certain issue, but until you see the money, their promises aren’t real. On Budget day, you get to see them put their money where their mouth is.”

As soon as the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was over, the Government – to its credit – pledged to take action on all 76 recommendations made in the commission’s final report.

Yesterday, it put its money where its mouth is.

So, it has set aside $606.7 million over five years to back up its claim. Part of the money ($2.6 million over two years) will go towards designing and implementing an industry-funded compensation scheme of last resort for consumers and small business. Another $30.7 million will be used to pay compensation to consumers and small businesses with unresolved and unpaid legacy disputes.

Over $404 million will be handed over to the Australian Securities and Investments Commission (ASIC) to “implement its new enforcement strategy and expand its capabilities and roles in accordance with the recommendations of the royal commission” and a further $145 million goes to the Australian Prudential Regulation Authority (APRA) “to strengthen its supervisory and enforcement activities which will support its response to key areas of concern raised by the royal commission, including with respect to governance, culture and remuneration”.

Money has been set aside to establish an independent financial regulator to oversee both ASIC and APRA to make sure the aforementioned money is well spent.

Do you give the Government credit for backing its claims to take action on the banking and finance sector?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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28 Comments

Total Comments: 28
  1. 0
    0

    I honestly don’t think anyone is listening to these buffoons any more. We’re all just waiting, baseball bats in hand, for the election.

    • 0
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      I hope you are not listening to the even bigger buffoons.

    • 0
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      Call me cynical but I’ll bet the Remuneration Tribunal is geared up to increase pollies’ salaries by many more more dollars than they’re giving the rest of Australians.

    • 0
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      Right. We’re not listening to the bigger buffoons such as you, OG.

    • 0
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      Yeah, too many buffoons around. At least you can decide right now to vote OUT all sitting Liberal, Labor & Greens MPs.

      Triss, they didn’t want to leave it all to the Remuneration Tribunal, i.e. to do the heavy lifting for them, so they have arranged for Tax Cuts of $11,640 for EVERY Federal politician (since they all earn above $200K) from 2024. One more reason to vote them all OUT so that they don’t get to 2024. Voters need to start this habit of voting them out NOW by putting them LAST (or just above the crazies) in preferences.

  2. 0
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    By all means give the government credit for actually doing something about the banking and finance industry but given their passionate opposition to the Royal Commission in the first place it is way too late. Action should have been taken years ago.

  3. 0
    0

    By all means give the government credit for actually doing something about the banking and finance industry but given their passionate opposition to the Royal Commission in the first place it is way too late. Action should have been taken years ago.

  4. 0
    0

    Election bribes, too little, too late!

  5. 0
    0

    Dolling out small lollies and shuffling the deckchairs on the Titanic. Blatant vote buying in the belief that voters are stupid and have a cargo cult mentality.
    The sooner we get rid of these extremist idiots the better. We need real leadership. Health, education, climate change, care of the aged and the disabled. Proper limitations on banks and insurance companies. Real energy policies. These are some of the issues that this party is completely incapable of addressing.

    • 0
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      Andromeda 143, do you think the other party (parties) are capable of addressing the issues you have outlined? The first thing we need is real leadership to that aims to help Australia and Australians move towards becoming a First World economy.

      Sadly our current crop of politicans, of all colours, are primarily concerned with being re-elected rather than taking Australia forward.

  6. 0
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    Where are the PROSECUTIONS Leon? Not one happening so the crooks are AGAIN being let off. This is what happened in America after the GFC.
    We are already back to ‘business as usual’ with the Commonwealth Bank now saying it ‘may’ sell its wealth business ‘in the future’. That means it will not.

    Lets call a spade a spade. This has been an expensive public relations exercise where major changes are not going to happen. Give it 20-30 years and we’ll be exactly where we were prior to the Royal Commission.

  7. 0
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    Opinion – Too little money set aside for compensation means the Government is humouring us all to stay in power.

    I know at least one person who lost $10 million to BankWest/ CBA. Yet the Government has set aside only $30.7m to compensate everyone.

  8. 0
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    Why is this low life government using taxpayers money for compensation to those that were ripped of by the banks etc make them pay or start jailing them if that had been a blue collar worker they would have been done allready

  9. 0
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    Why is this low life government using taxpayers money for compensation to those that were ripped of by the banks etc make them pay or start jailing them if that had been a blue collar worker they would have been done allready

  10. 0
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    Credit is most certainly due to Frydenberg and Morrison for getting us back into budget surplus – something that Shorten and his mates were and are quite incapable of achieving.

    • 0
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      I agree credit is due Not a Bludger but we must also remember that it is a projected surplus and not money in the bank just yet. Still reason to be optimistic though. Likely to be short lived unfortunately IF the pollsters are correct.

    • 0
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      N a b, what good to an every day Australian is a budget surplus? can we spend it? does it give us better infrastructure like Renewable to replace Coal, – does it feed the poor. succour the aged, educate the children?
      No, it does none of these.
      Who does it help? well, seemingly a minority of Arse clenching Economists that, apparently descending from Puritan forefathers, believe that no one should dance. Oh, and maybe banks..

    • 0
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      I seem to recall that revenue forecast in the 2018 budget was about $6billion out, fortunately on the upside due mainly to increased iron ore prices. However that could just as easily be reversed for the 2019 budget. Do not count your surplus before it is in the bank. For all their touting and Treasury modelling I suggest the any Australian Government, irrespective of their political persuasion, has about as much control on the Australian economy as they have on the Australian weather.

    • 0
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      The LNP trolls are here spouting LNP lies.

      We’re NOT back in the black – it’s still hypothetical. And if it does happen, it’ll only be cause they robbed the NDIS.

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