Announcement date
15 June 2024
Link to announcement
Helping Australians get a better deal on banking products
Problem being addressed
The ACCC’s retail deposits inquiry identified that many deposit holders have not received increasing returns in line with rising interest rates because of low levels of customer engagement. Moreover, the market has developed products that feature requirements which customers often do not fulfil.
The ACCC’s home loan price inquiry identified that many households with a home loan are unlikely to switch and there is a concentration of customers who pay more for their mortgage than if they were to move to a different product or competitor.
Proposal
Implement recommendations from the retail deposits and home loan price inquiries to increase levels of consumer engagement and reduce barriers to consumers switching home loan and retail deposit products.
Assessed Impact Analysis outcome
Impact Analysis Equivalent
Assessment comments
The Office of Impact Analysis (OIA) does not assess the quality of reviews and documents used in lieu of an Impact Analysis (IA). Impact Analysis Equivalents (IAE) are assessed by OIA for relevance to the recommended option(s) and for the coverage of the 7 Impact Analysis questions conducted.
The OIA assessed that the options analysed in the certified reports—Home Loan Inquiry Final Report 2020 and Retail Deposit Inquiry Final Report 2023 —and additional analysis prepared by the Treasury—Treasury Additional Analysis—are sufficiently relevant to the proposal to meet the requirements in the Australian Government Guide to Policy Impact Analysis.
Regulatory burden
The Treasury estimates these measures will result in an increase in regulatory costs of $19.7 million per year, averaged over ten years.
Accessibility links:
Home loan price inquiry - final report
Retail deposits inquiry final report