NAB to play ball with Labor on $640m levy

National Australia Bank has vowed to “engage constructively” on Labor’s $640 million proposed bank levy.

Australian Banking Association CEO Anna Bligh in Canberra. Picture: Kym Smith

National Australia Bank has broken ranks with its rivals by vowing to “engage constructively” on Labor’s $640 million proposed bank levy, which aims to help victims of misconduct.

NAB was alone among the major banks to comment on Labor’s plan. Others left the response to industry group the Australian Banking Association.

Labor’s plan includes funding a doubling of the number of financial counsellors in Australia to 1000. “NAB supports the role of ­financial counsellors in assisting vulnerable Australians,” a bank spokeswoman said. “We will ­engage constructively on any policies and ideas to help banking customers.”

ABA chief executive Anna Bligh was more hesitant in her comments, calling on Labor to consult with banks should it win this year’s federal election.

“Banks will study this commitment in detail and expect to be consulted on its practical impacts should Labor form government after the election,” she said.

Labor plans to levy Australia’s biggest banks and companies, including scandal-plagued AMP, to raise $160m annually over four years. Half of the fund proceeds will be used to boost financial counsellor numbers over the four years, with Labor yet to reveal where the remainder will be allocated. “We are reviewing and will await to hear further detail, but, as we have always stated, ensuring positive consumer outcomes and consumer choice are paramount for any industry initiative,” a spokesman for Bendigo and Adelaide Bank said.

Labor cited the Hayne royal commission’s final report as driving its decision on the fund. Commissioner Kenneth Hayne stressed the importance of counselling and access to legal services for aggrieved bank customers as part of his 76 recommendations.

The Consumer Action Law Centre’s Gerard Brody said Labor’s new levy was “very sensible” given the high-debt levels of Australian households and that two of every five people seeking help were turned away due to a lack of counsellor resourcing.

The big banks have already repaid customers more than $1.4 billion due to wrongdoing or mischarging as a result of the royal commission, and that figure is ­expected to climb.

A bank investor said Labor’s new levy just added another “layer of regulation” on the sector.

“It’s another indication of the direction our legislators are going and it’s all relentless,” he said, ­declining to be named.