Government heavy on levy confidentiality contracts
The draft bill outlining the Federal government's great big new bank tax was due to be published yesterday, but its progress is now in doubt, as the secrecy obligations sought to be imposed will prevent disclosure before the bill is presented tomorrow in Parliament. The Australian reports that Treasurer Scott Morrison "has escalated his fight with the major banks by forcing them to sign confidentiality agreements before they can see the draft legislation to impose a $6.2 billion levy on their operations". In what seems to be a Kafkaesque turn of events, the contracts will not only stop the banks talking publicly about the detail of the bill but will prevent the bank executives from seeking advice from outside experts such as their law firms and accounting firms, which risks breaching the ASX's continuous disclosure rules, according to the Australian. Further steps are likely to be taken in the next day or two.