Less than one third of the deposit base held by Australian banks will be subject to the deposit insurance scheme proposed by the Federal Government.
New estimates released by Treasury yesterday put the level of deposits eligible for coverage under the Financial Claims Scheme at A$688 billion, down from the most recent estimate of $697 billion.
In the "
Pre-Election Economic and Fiscal Outlook", Treasury said the decline reflected "better information provided by ADIs."
Treasury also provided updated data on liabilities covered by the Guarantee Scheme for Large Deposits and Wholesale Funding.
As at June 2013, total liabilities covered by the scheme were estimated at $48 billion, down from $55 billion at March 2013.
This is made up of $2.3 billion (down from $2.8 billion) of large deposits and $46 billion (down from $52 billion) of long-term wholesale funding.
Treasury said all guaranteed short-term wholesale funding matured in March 2011.
Institutions participating in the guarantee scheme over the last four years have paid fees of $4.2 billion, Treasury said.
By comparison, the proposed annual insurance premium, at five basis points, on deposits, will be in the order of $350 million a year - or less than half the annual outlay by banks on the wholesale guarantee.