2026-10-15
The Victorian Greens have renewed their call for a levy on the big banks to fund cost-of-living relief, after the Reserve Bank today increased interest rates by 25 basis points to 4.6%, the highest cash rate since 2011.
The latest increase will add around $114 a month, or $1,368 a year, to repayments on a $750,000 mortgage if passed on in full, piling further pressure on households already struggling with the cost of housing, groceries, fuel and other essentials. The Greens say renters are also likely to feel the squeeze, as landlords seek to pass higher mortgage costs on through higher rents.
But while mortgage holders and renters are being squeezed, the banks are making billions. The big four made an estimated $16.9 billion in profit from owner-occupier home loans in 2025. Across the banking sector, profits remain enormous: APRA's latest figures show Australian banks recorded $42.5 billion in after-tax profit in the year to June 2026, up 7.5% on the previous year.
Australia Institute research estimates the big four banks make around $228,900 in profit over the life of an average 30-year owner-occupier home loan, including more than $11,000 in the first year alone.
Under the Victorian Greens' plan, the state would introduce a quarterly levy of 0.1% on Victoria's share of bank liabilities, targeting ANZ, Commonwealth Bank, Westpac, NAB and Macquarie.The independent Parliamentary Budget Office estimates the levy would raise $11.5 billion in its first four financial years, with annual revenue growing to more than $4.4 billion by 2036–37.
The Greens would use revenue raised from big corporations to fund cost-of-living measures including free public transport and free dental care.
Lines attributable to Victorian Greens Leader Ellen Sandell MP:
“Ordinary Victorians are being smashed by higher mortgage repayments, higher rents, higher grocery bills and higher fuel prices, while the big banks continue to make obscene profits.
“Victorians are being forced to pay more and more just to get by, while the big banks make obscene profits. They can afford to pay a bit more tax so we can fund public services like free public transport and free dental that bring down costs for everyone.
“Every time interest rates go up, mortgage holders are told to find another hundred dollars in the family budget. Meanwhile, the big banks are making around $229,000 in profit from the average home loan.
“The big banks are among the most profitable companies in the country. They can afford to pay a bit more tax so Victorians can afford to live.”