The information sharing deal, part of the G20 talks in Australia this year, requires banks to pass on information about their customers to the Australian Tax Office.
The common reporting standard on automatic exchange of information requires financial institutions to collect additional data on customers and disclose it to the Tax Office.
Labor Treasury spokesman Chris Bowen said the opposition supported the G20’s move to enhance the exchange of information between financial institutions and tax authorities to ensure companies pay their fair share of tax.
In a submission to the Treasury, the Financial Services Council, which represents the big four banks through their financial planning arms, said complying with the new rules would create significant costs to members, which would then be passed on to customers.
“We believe it is likely to be far more cost effective for the ATO to collect more or more detailed information through existing systems, rather than ask financial institutions to ask questions of customers,” it said.
Read more here: SMH