Treasurer Josh Frydenberg reveals banking overhaul target
Massive changes are supposedly coming for Australia’s banks within a few months — but critics say it’s a case of too little, too late.
Treasurer Josh Frydenberg has promised to shape up Australia’s banking sector by the end of 2020 in the wake of the damning royal commission into the industry.
But critics have lashed out at the plan, claiming it’s a case of too little, too late.
Speaking to the Victorian Chamber of Commerce and Industry today, Josh Frydenberg will promise to roll out a third of the government’s commitments outlined as a result of the Hayne royal commission by the end of the year.
Legislation for all recommendations will be introduced by the end of 2020.
“The need for change is undeniable and the community expects that the government’s response to the royal commission will be implemented swiftly,” he said.
The reforms will include a shake up of corporations law, superannuation, insurance and financial services, which are said to be the biggest in 30 years.
In an opinion piece published in The Australian, Mr Frydenberg said the commission’s recommendations were focused on delivering better consumer outcomes in four ways.
They include strengthening consumer protections, increasing accountability, boosting the effectiveness of regulators and helping those harmed by banking misconduct.
“The scale of these reforms, detailed in the government’s implementation plan, represents the biggest shake-up of the financial sector in three decades and the speed with which they will be implemented is unprecedented,” Mr Frydenberg wrote.
“Our reforms will be delivered in a way that enhances consumer outcomes with more accountability, transparency and protections, without compromising the flow of credit and competition.
“Industry is on notice. The public’s tolerance has been exhausted as they now expect, and we will ensure, that the reforms are delivered and the behaviour of those in the sector better reflects community expectations.”
Mr Frydenberg said the government had already implemented 15 of its commitments, including eight of Commissioner Hayne’s own recommendations, and seven of the government’s own commitments.
One of those changes has been new legislation which prevents super funds from enticing employers with gifts or hospitality to influence the choice of default fund for their employees.
Treasury and the Office of Parliamentary Counsel will receive an extra $9.3 million to get the job done, after commissioner Kenneth Hayne made 76 recommendations for reform, including 54 for government, 12 for regulators and 10 for industry.
Mr Frydenberg says more than 20 changes will be made or introduced to parliament by the end of the year, with all acted on by the end of next year.
But shadow treasurer Jim Chalmers said there had already been an unacceptable delay.
“Australians know that the Liberals aren’t serious about dealing with bank rorts and rip-offs. They are only reluctantly and belatedly responding to the shocking issues that have been raised,” he said.
Twitter users were also quick to pan the government’s banking plan.
“Why is it taking so long to implement the recommendations? The end of 2020 is a long way away,” one social media user posted, while another added: “Financial penalties are laughable.
“The only thing that would focus the minds of offenders is the jangle of handcuffs followed by significant jail time.”
Others pointed out the Coalition had actually tried to block the royal commission in the first place.
“26 times the Coalition voted against a banking royal commission. Therefore the Coalition softc***s are in no position to take any credit for any reforms implemented,” a Twitter user wrote.
And others pointed out that few dodgy bankers had actually been punished for their conduct.
“Just run it past me. How many crooked bankers have been charged with a crime? Of any sort at all?” one man wrote.
With AAP
Originally published as Treasurer Josh Frydenberg reveals banking overhaul target