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Prime Minister’s exemption - Competitive and Sustainable Banking System – banning home loan exit fees - Treasury

On 12 December the Treasurer, the Hon Wayne Swan, announced a package of measures related to banking system. One of these measures was a prohibition on exit fees on all new home loans issued after 1 July 2011. A Regulation Impact Statement (RIS) was required for this measure, but the Prime Minister granted an exemption on the basis of exceptional circumstances. A post implementation review will be required within 1 to 2 years of its implementation.