Mike Smith, Chief executive officer,

ANZ

Does the GST need to be changed? If so, how?

It's unrealistic to leave it where it is and we probably need to have national conversation about broadening the base. We should look at the success of the New Zealand model which has significantly lower personal and business taxes but a much broader based consumption tax. The taxation reforms they have already implemented have set them up well as one of the best performing mature economies post the GFC.

I must stress though that you can't leave income and business tax where it is if you are going to make changes to the GST base.

Should the GST-free threshold on online purchases be lowered?

What is required in our taxation system is simplification. If GST is applied on a product or service it should be consistently applied.

Will mortgage rates be higher or lower in 12 months?

I can't comment of course on mortgage rates as that would be price signalling. If you are asking about the official cash rate, which doesn't define actual mortgage rates, I suspect the RBA will not be in a hurry to move as there is no sign yet of movement in US rates.

Are Australians too home-ownership obsessed?

No. I think it's actually a very positive part of our psyche that people dream of owning their own home. In Europe people rent all their lives but then rely on an incredible welfare system to support them, and of course that isn't going to be sustainable for much longer.

Do Australians have too much debt?

The headline numbers are acceptable given household debt has remained relatively stable for the last 10 years. I think the concern will be for when interest rates rise. Borrowers need to understand that it will be impossible for this low rate regime to last forever. While we put in interest rate buffers, people have to take responsibility for their decision and anticipate that the cost of borrowing will eventually increase.

Are property values too high?

Not really. You have to remember that Australia is not a homogenous market and I wouldn't say values have been climbing steeply in Brisbane for instance.

I think it's been more of an issue for Melbourne and Sydney, but with increased supply coming on in the apartment market I think we are already starting to see the market soften a little.

The key measure is affordability. While prices are slightly high in Sydney, Melbourne and Perth our other capital cities haven't seen that sort of price growth and still remain relatively affordable.

Why are the banks so disliked?

It's a strange situation when you consider customer satisfaction levels across the board are at record highs. I think there's an institutional dislike of banks in Australia, possibly even emanating from the days of Ned Kelly, meaning the industry needs to work even harder to win the trust of our all stakeholders.

Is the delay over the Government's budget measures harming the economy? 

It's certainly not helping. They have a clear mandate to govern and should be allowed to get on with it.

What are the economic threats on the horizon?

There will be some problems caused by falling commodity prices but hopefully that is mitigated by an increase in volumes and a falling dollar. Essentially commodity prices are adjusting to the massive investment in increased supply so it's not surprising they are coming off.

How should self-funded retirees be encouraged?

We're fortunate that we have a tax system that already encourages superannuation savings and frankly everything we can do to further encourage it should be on the table. Anybody who believes that the government is going to be able to look after them in twenty years' time is in for a bit of shock.

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Ian Narev, Chief executive officer

CBA

Does the GST need to be changed? Should the GST-free threshold on online purchases be lowered?We should not be taking these issues on a piecemeal basis. They are best dealt with as part of a broad review of the tax system. We are looking forward to seeing that debate accelerate next year. 

Will mortgage rates be higher or lower in 12 months?

One thing is for sure and that is that competition will be more intense. Whether or not rates will be higher depends on the broader interest rate environment.

Are Australians too home-ownership obsessed?

Home ownership has traditionally been part of the Australian psyche. Of course it is also important for people to ensure that their investments have the right level of diversification to enable them to achieve their long term goals.

Do Australians have too much debt?

No they don't. Lending standards here are appropriate across the industry.

Are property values too high?

The Australian population is growing steadily. And people from overseas want to live and invest here. Those are major strengths of the economy. They also mean that demand for housing goes up, and so do values. We also need to bear in mind that talk of "the Australian property market" is misguided. Australia has hundreds of different property markets. Each has differing characteristics, and different supply/demand dynamics

Why are the banks so disliked?

Our customers are more satisfied with the service they receive than they have ever been.  But as a major institution we attract our fair share of scrutiny, and sometimes criticism. That is part and parcel of being a big bank. We listen, and try to keep improving.

Is the delay over the Government's budget measures harming the economy?

When we have uncertainty in global markets, businesses in particular want to see certainty in the domestic policy environment. I can't point to specific impacts. But these delays are not good for confidence.

What are the economic threats on the horizon?

Global growth is still weak, particularly in Europe. And central banks are still major players in many economies, creating volatility.

How should self-funded retirees be encouraged?

We need a conducive policy environment, including in our view moving the Superannuation Guarantee to 12 per cent. As a major financial services provider, we also need to do our bit to make sure that all Australians are well informed about options for funding their retirement, and have access to high quality, good value products and services.

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Andrew Thorburn, Chief executive officer, NAB

Does the GST need to be changed? If so, how? Should the GST-free threshold on online purchases be lowered?

The Government's tax reform White Paper is an opportunity to ensure we have an efficient tax system in place. Any discussions about the GST should be in the context of proposed changes to taxation more broadly.

Will mortgage rates be higher or lower in 12 months?

We are experiencing an historic low rate environment, with the cash rate the lowest it has been in 50 years and it is our economists' expectation that the cash rate in Australia will remain at record lows for a while yet. People need to be aware that this environment won't last forever, so it's encouraging that NAB is seeing our customers take advantage of low rates to get ahead on their mortgage repayments and own their own home sooner.

Are Australians too home-ownership obsessed?

Housing is an important sector and a strong generator of growth in the economy and, ultimately, people need a place to live. We've seen strong growth in house prices in the last few years, especially in Melbourne and Sydney – and with a growing population, we see continued growth ahead, albeit not at the same rate. But we believe that it is important that people maintain a balanced portfolio of investments in order to reduce risk.

Do Australians have too much debt?

We are seeing a prudent approach to debt, with 85 per cent of NAB mortgage customers ahead on their repayments, alongside a 5.8 per cent increase in the number of credit card accounts paid in full year-on-year.  No major bank has done as much as NAB to give customers a better deal on interest rates and fees, saving them thousands - and helping them reach their goals sooner.

We also recognise that access to a small amount of affordable credit is really important for managing unexpected costs, like a car or essential household appliance breaking down. NAB has committed $130 million to funding low-interest and no-interest loans, in partnership with Good Shepherd Microfinance - to help Australians who would otherwise be potentially exposed to predatory lending practices.

Are property values too high?

Obviously there are some areas of Australia, particularly inner Melbourne and Sydney, which have seen significant growth in house prices, but equally there are other areas of the country haven't experienced the same level of growth. We are operating in a global property market, which is influencing house prices in Australia – and this is also contributing to substantial growth in our national wealth.

Why are the banks so disliked?

I'm proud to be a banker and I believe banks have a responsibility to make meaningful contributions to the community - but there's a lot that the industry needs to do to earn the trust of customers.

At NAB, we have been unashamedly competitive in giving customers a fairer deal - and we will keep working to do more for them, to lift the bar - and to grow our business by doing so.

Is the delay over the Government's budget measures harming the economy?

It is important for business and individuals to have certainty in order to plan for their future and there is obviously still a lot of debate around the budget. I know the Government is working hard to secure the passage of budget measures and their goal of returning the budget to surplus is encouraging.

What are the economic threats on the horizon?

While some uncertainty remains, there is evidence, through our economic research, of green shoots that are helping our economy transition. Health, education and tourism are poised to benefit from a re-balance in investment away from mining construction. Nevertheless, the transition period is likely to be a challenging one and we could see unemployment rise a little further to peak at around 6.75 per cent. We always need to be prepared for any challenges to our economy, but our message is that there are still great opportunities for businesses to grow right now and we've committed to lending $1 billion a month to Australian businesses, to help make it possible.

How should self-funded retirees be encouraged?

The reality is that Australia has an aging population and a one trillion dollar retirement savings gap. We need to encourage people not to put off their retirement planning and to seek out quality advice to ensure they make informed financial and investment decisions.

Affordable and trusted financial advice is more important than ever - and the industry needs to do more to earn greater trust. It is something NAB and MLC have led, as first to move to a fee for advice model - and more recently, with the introduction of new education standards for all planners.

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George Frazis, Chief executive officer, St George Bank

Does the GST need to be changed? If so, how?It's important we have a productive, rather than political debate about the GST and about Australia's taxation system more broadly. The GST is more than a decade old so it's a sensible time to start considering its next 10 years. 

Should the GST-free threshold on online purchases be lowered?Lowering the GST free threshold would of course generate revenue for the government, but it would also act as a disincentive to shop at overseas online stores. The sticking point in this debate seems to be how to collect the extra GST in a way that doesn't cost more than it generates. For retailers in Australia, the focus needs to be on customer service and ensuring access to goods people want to buy.

Will mortgage rates be higher or lower in 12 months?Our economics team expects official interest rates to remain on hold until 2016. Further weakness in the domestic economy will most likely prevent the RBA from moving rates until then. There is a chance of a drop in rates if the dollar continues to hold up and the required investment from the non-mining sector does not increase.

Are Australians too home-ownership obsessed?Buying a home has been the great Australian dream for generations and I think this will continue. Having said that, not all Australians own their own home nor want to. About one third own a home outright, one third rent and one third have a mortgage. People are financially savvy these days and investing their money in a variety of ways, but home ownership will always be an important part of the mix.

Do Australians have too much debt?The latest St.George Household Conditions Index showed that the proportion of Australian households running into debt or needing to draw on their savings had decreased to 17.7 per cent, that's the lowest in nine months.  This is a good sign that Australian families are motivated to pay off their debt quicker.

Are property values too high?Although housing is expensive, I see this as mostly a consequence of a major supply-demand imbalance rather than speculative activity. A shortage of housing combined with low interest rates and a strong surge in population growth has created an undersupply of housing. There are some signs that the pace of house price growth is started to temper. We should also remember that population growth is good for the economy and we need to ensure infrastructure keeps pace.

Why are the banks so disliked?Whilst I would say that the trust deficit for banks is quite material in some parts of the world, the situation is a little different here in Australia. We have a strong banking system, a strong regulatory environment and a stable political environment. Our economy is also strong. At St George, we are lucky enough to have an extraordinary relationship with our customers. We love getting to know our customers so we can help them with their new home or new business. Our purpose as a bank is essentially to help people. 

Is the delay over the Government's budget measures harming the economy? The priority for all politicians must remain on managing the long term structural deficit and I think it's important that the budget is put on a long term sustainable footing in a way that doesn't undermine current economic conditions and continues to facilitate growth. Communicating the long term vision is critical.

What are the economic threats on the horizon?If I had to pick the single biggest threat or risk, I would say missed opportunities for productivity improvements borne out of the Digital Revolution. Unless we lift our investments in technology, innovation, and R&D, we risk low or negative productivity improvements which would effectively leave us behind. While it is clear that the responsibility ought to lie with industry to do the heavy lifting, as a nation we are perhaps not doing as much as we could or should.

How should self-funded retirees be encouraged?Life expectancy is steadily increasing so it's never been more pressing for us to save for your retirement.  After a life time of hard work, and having made a significant contribution to our country's success, self-funded retirees are entitled to a safe and secure retirement.  There is a real long term benefit to topping up compulsory super – it's about looking ahead and understanding we need enough retirement savings to live well and securely.

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 Jon Sutton, Acting chief executive officer, Bank of Queensland

Does the GST need to be changed? If so, how?The forthcoming wholesale review will provide a good opportunity to see how the operation of the taxation system can be improved. GST should be part of that review, including consideration of the merits of a higher rate and/or a broader base where fewer goods and services are exempted. 

Should the GST-free threshold on online purchases be lowered?

New technologies and marketing will continue to innovate regardless of what the GST-free threshold is – responding appropriately will continue to be an ongoing challenge for bricks and mortar retailers. This is also the case for traditional institutions across most sectors including financial services.

Will mortgage rates be higher or lower in 12 months?

They'll be similar, remaining at near-record lows.  Unemployment trends are likely to have a significant impact on how the Reserve Bank thinks about the cash rate.

Are Australians too home-ownership obsessed?

Australia's rate of home ownership is similar to that of the United States, Canada and the United Kingdom so it's hard to argue we're too obsessed. The strength of our financial system, national income growth, tax and other government policies all influence housing purchase trends. Affordability is the other driver and that is starting to work against first home buyers.

Do Australians have too much debt?

Australian household to income debt levels have been around 150% for some time now, a very manageable level when you look at the way our economy has been performing. Household net wealth (assets minus wealth) is high by global standards, partly reflecting house prices but also superannuation, which means that Australians are generally in a strong financial position.

Are property values too high?

Not generally.  We're seeing some hot spots in some markets (investment properties, inner city apartments) in Sydney and Melbourne but this is not reflective of the rest of the country.

Why are the banks so disliked?

I think there's a big difference between public perception of the major banks and challenger banks like BOQ.  BOQ's customer satisfaction and advocacy ratings are very strong and work hard at constantly improving customers' experiences.

Is the delay over the Government's budget measures harming the economy? 

Uncertainty of any kind can potentially impact markets and the economy.

What are the economic threats on the horizon?

The big drop in mining investment means there is a growth hole to fill while falling commodities prices means less income for Australia.  We would like to see the Australian dollar at lower levels and we need to keep a watching brief on European economic developments.

How should self-funded retirees be encouraged?

There are already significant incentives in the system for self-funded retirees to save money. The question that David Murray's Financial System Inquiry might well address is whether the superannuation system is structured well enough for those people already in it.

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John Nesbitt, Chief executive officer, Suncorp Bank

Does the GST need to be changed? If so, how?

Change is a constant and it's inevitable that the GST must change over time, however the political process between the states and the Commonwealth is very complicated. The GST is one of the most efficient and stable taxes. Any changes to GST would have to be offset by reduction in other direct taxes (i.e. income tax) and removal of inefficient indirect taxes at state and federal level.

Should the GST-free threshold on online purchases be lowered?

If the threshold was varied, it would need to be done in a cost effective manner to ensure the revenue generated justified the cost of implementing the policy changes. If not, it will only result in costing everyone more. There would also need to be consideration for competitive neutrality between direct and online retailers.

Will mortgage rates be higher or lower in 12 months?

It's currently not possible for Banks to comment on interest rates. That would be collusion. Broadly, looking at the indicators, the economy is finely balanced at the moment and has been through a period of low rates and low growth. We'll emerge from that through strong corporate leadership which can herald a return to confidence and growth, founded on good investment and improvements in productivity. If the economy improves then it is reasonable to assume interest rates will rise over time.

Are Australians too home-ownership obsessed?

It has always been the great Australian dream to own your own home and it will continue to be an important part of our nation's culture. Owning your own home provides Australians with a sense of financial security and is often considered a form of forced savings by many.

        Do Australians have too much debt?

In recent years, Australian households have been saving at a rate not seen since the 1980s. Consumers are managing down their debt levels and the vast majority are well ahead on their mortgage repayments. A lot of our mortgage customers maintained their repayments at higher interest rate levels thus taking advantage of the low-rate environment to get ahead on their mortgages. We're focussed on ensuring that borrowers in this low-rate environment are well placed to service that debt, particularly when interest rates ultimately go up. 

Are property values too high?

Property prices are a challenge for first home buyers and many consumers, particularly in major cities. It means we're seeing interesting trends with younger buyers purchasing further out and renting out those properties while they remain living with their parents in CBD areas. This highlights the need for infrastructure development and job creation in regional and rural Australia.

Why are the banks so disliked?

Some banks are disliked. Suncorp Bank has amongst the highest customer satisfaction ratings of all banks in Australia. We are a genuine and trusted alternative. Australians want to bank with a regional bank and we believe this is pivotal as the Financial System Inquiry unfolds. The country wants and needs a strong multi-tiered financial services sector. It provides competitive tension and a focus on what customers really want.

        Is the delay over the Government's budget measures harming the     economy?

The strength of the Australian economy is heavily reliant on the nation's elected representatives working together. Political uncertainty saw us squander some of the opportunities we were presented as a result of the mining boom and now we have to make up for this. We would like to see more bipartisanship across all levels of Government to ensure we face the challenges imposed on the country with a united front.

Political uncertainty, which is a common theme across the globe, is always a negative for investment and investment is essential in creating jobs, growing our communities and strengthening our economy. Consumer confidence will rise and economic activity will improve globally with strong leadership.

 What are the economic threats on the horizon?It is certainly an interesting time for the economy. With falling terms of trade, stagnant national income and a decrease in mining investment we need to see diversification. Our economy needs many strong planks to ensure a sustainable future.

Greater investment is required to support the need for infrastructure, particularly in regional areas. By generating growth and creating employment opportunities in these areas, it will alleviate some of the population and property pressures we're seeing in metropolitan areas. Productivity must be improved to ensure we remain globally competitive.

Suncorp Group would like to see further investment in mitigation works to prevent natural disasters from turning into economic disasters. We believe prevention is better than a cure. Often relatively modest investment in levee banks and dams delivers vast financial relief in the long run, as we have seen in Roma in Queensland.

Additionally, we believe there is merit in considering water infrastructure projects to address the repeated cycles of drought and the subsequent human, financial and economic impacts.

How should self funded retirees be encouraged?People are living longer and having long retirements. For most people this means they will have to work a few more years to afford a comfortable retirement. As a large employer, we're committed to creating opportunities for our employees who want to work longer and we want to assist them by providing flexible working hours and designing roles to better suit changing needs. This also supports our efforts to develop a diverse workforce which matches our diverse customer base. Self-funded retirees remove a future obligation from the taxpayer in the form of reduced aged pensions. In return for tax concessions during accumulation they forego spending and access to those funds over their working lives. Ensuring our superannuation system retains an appropriate level of incentive to save for retirement should be a bipartisan focus.

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Rob De Luca, Managing director, Bankwest Bank

Does the GST need to be changed? If so, how?

The debate about the GST is as much about how it is allocated amongst the states, as about the rate at which it is levied and the range of goods and services to which it applies.

The GST is a key component of the Federal Government's Tax White Paper, but also cuts across the equally important White Paper on the Reform of the Federation.

We have just seen how an increase in Japan's equivalent of the GST pushed the world's third largest economy back into recession. If the GST rate is changed, the state of the economy needs to be carefully taken into account, as does the level and structure of compensation to low and fixed income households. This recompense would not just be about equity; if too many households cut their spending to pay a higher GST, the national economy could slow down sharply.

Should the GST-free threshold on online purchases be lowered?

As traditional 'bricks and mortar' retailers struggle to cope with the impact of online merchandising, it is challenging to sustain a relatively high threshold for the exemption from GST. It may be necessary to bring the digital economy in line with the old economy as part of the GST reform process.

Will mortgage rates be higher or lower in 12 months?

Subdued household consumption is one reason the RBA continues to state that "the most prudent course is likely to be a period of stability in interest rates". With that in mind and current levels of inflation, it could be another year or longer before the official cash rate moves materially either way. There are many factors that impact the broader interest rate environment, so we will continue to watch closely.

Are Australians too home-ownership obsessed?

For generations, Australians have been passionate participants in the national property market which has delivered positive returns for owner-occupiers and investors alike. In WA, we continue to see a significant level of activity among first time home buyers in particular.

According to Bankwest's annual First Time Buyer Deposit Report, the number of first time home buyers in Western Australia increased by 3.4 per cent in the year to June 2014, up to 20,608 from 19,933 in 2013. Western Australia stands out from the national average, where the number of first time home buyers is down by 11.6 per cent during this period.

Do Australians have too much debt?

Debts clearly vary across Australian households but it's important to reinforce that Australian lending standards are appropriate.

Are property values too high?

The Sydney and Melbourne property markets continue to see significant activity and, as a result, receive considerable attention from interested parties including the RBA, State and Federal Governments, local and foreign investors, and the general public.

Here in WA, while activity levels are more subdued as compared to Sydney and Melbourne, the market remains positive having experienced significant gains in recent years. Interestingly, according to our own research in the recently released annual First Time Buyer Deposit Report, the average first time buyer couple in WA would need to save for 3.7 years to raise a 20 per cent deposit to buy a house, below the national average of 4.1 years.

Additionally, wage growth has outpaced median house price growth over the past five years in WA, which is likely to have contributed to the decline in savings time over the past five years for West Australian first time buyers.

Why are the banks so disliked?

According to various data sources, as well as anecdotal feedback I receive from our customers nationwide when traveling around the country, many customers are extremely satisfied with their main financial institutions. I am particularly proud of the overwhelmingly positive feedback I receive on a daily basis about Bankwest's commitment to customer satisfaction.

According to the Roy Morgan Single Source satisfaction results from October, 88.6 per cent of Main Financial Institution retail customers are satisfied with Bankwest. This is a terrific result stemming from our colleagues' continued commitment to making banking easier and delivering value to our customers.

Despite this encouraging result, we are not at all complacent. We remain focused on continuing to listen to what matters to our customers.  

Is the delay over the Government's budget measures harming the economy?

The delays in passing key Government budget measures in the Senate are adding to anxiety for both businesses and households at a time when consumer sentiment is fragile. With plenty of external challenges, it is crucial to minimise domestic uncertainties.

What are the economic threats on the horizon?

In our home base of WA, we are acutely aware of the impact of falling commodity prices, especially the 50 per cent drop in the iron ore price in 2014.

Dwelling construction is filling much of the void left by the end of the construction phase of resources boom "Mark 2" and while the housing cycle has some way to run, it may eventually turn down. If the Australian dollar were lower, other parts of the economy would be well placed to grow further.

There are, however, plenty of risks that could intervene. For example, a sharp slowing in China's economy is clearly a peril, although Europe's malaise could drag the rest of the world down.

Having said that, we shouldn't underestimate the capacity of our biggest trading partner, China, to sustain solid growth. While Australia's recent free trade agreement with China won't pay dividends for a few years, it is a key component to coping with China's economy transitioning from being fuelled by investment in steel-intensive industrial infrastructure to consumer-oriented growth.

How should self-funded retirees be encouraged?

Clearly it is important for us to continue to do our part in increasing financial literacy and encouraging specific debate and understanding around how people can properly prepare for their retirement. This will ultimately be in the interests of individuals and the nation.

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Scott Tanner, Chief executive, Bank of Melbourne

Does the GST need to be changed? Should the GST-free threshold on online purchases be lowered?

The Government's white paper needs to consider how to put Australia's tax system on a sustainable footing.  This needs to be a broad ranging review that includes full consideration of the role of the GST as part of Australia's tax base and its distribution.

Will mortgage rates be higher or lower in 12 months?

Our economics team expects official interest rates to remain on hold until 2016. I agree with them. I expect that competing pressures in the domestic economy will prevent the RBA from moving rates until then.

Are Australians too home ownership obsessed?

Owning a home is an aspiration for many Australians, but people are increasingly looking beyond property and into other investment categories.

Do Australians have too much debt?

We're seeing a number of signs that personal balance sheets have strengthened since the GFC. Credit card debt grew just 1% in the year to October, and when we look at our mortgage book a large number of our customers are ahead in their mortgage repayments.

Are property values too high?

There may have been some speculative buying in 2013 and early 2014 but house and unit prices actually fell last November (ie, November 2014). Demand and supply now appear to be roughly in balance so prices are not growing as rapidly as they did earlier in 2014.  The fair turnover of housing in Melbourne suggests there are still buyers who do not consider current prices to be overvalued. I expect price rises to be more moderate this year.

Why are the banks so disliked?

We focus on delivering exceptional customer service every day – which is what each customer should expect, no matter how large or small their financial need. Like many service industries, banks don't always get it right. I hear great stories everyday of how our people are helping Victorians buy their first home, start a business, or get set for retirement. 

Is the delay over the government's budget measures harming the economy?

Australia's long term structural deficit needs to be addressed. It's important that the Budget is sustainable over the long term and supports economic growth. Legislation often needs to be negotiated through Parliament. This Government, like many before, is doing that.

What are the economic threats on the horizon?

Victoria's economy is in transition as it shifts from its traditional manufacturing base to a services economy. The relatively strong Australian dollar has compounded the difficulties for manufacturing in recent years, and impacted other industries such as international education, tourism and agriculture. With the Australian dollar trending lower recently and the low interest rate environment, I'm optimistic about the outlook. Household and commercial balance sheets are stronger, interest rates are low and our population continues to grow – lifting demand and bringing new skills to our economy.

How should self-funded retirees be encouraged?

I'd encourage all Australians to look ahead and understand how much in retirement savings they're going to need to live the lifestyle they want. This includes considering the long-term benefits of topping up their compulsory super, as well as seeking regular advice that's tailored to their particular financial situation.

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Mike Hirst, Managing director, Bendigo and Adelaide Bank

Does the GST need to be changed? If so, how?

Taxation is an important issue, isn't it? Declining commodity prices and an ageing population have highlighted the fragility of our current tax base, so we should consider the GST as one element in a broader mix of measures. Given our GST rate is low by international comparisons I would have thought a modest increase in the rate was justified, but given it's a regressive tax, we'd need to look at compensating people on low incomes so we don't impact their living standards.

Should the GST-free threshold on online purchases be lowered?

The internet has taught lots of people that the lowest price equals best value. I'm not sure this is correct and, at any rate, a depreciating dollar will take care of some of the offshore, on-line spending over time. People are happy to buy overseas at or near parity; they won't be as keen at 70 cents. Nevertheless, if it starts to mean that differential tax treatment causes an uneven playing field then it should be looked at.

Will mortgage rates be higher or lower in 12 months?

I'm a punter, so I'm always looking for inside information. You'd need to ask Glenn Stevens to get the right answer, but I'm going with unchanged.

Are Australians too home-ownership obsessed?

Our bank was formed in 1858 for a very specific purpose – to help miners buy their home – so the dream runs deep. I'm not sure obsessed is right, but it is deeply ingrained in our culture. The outcome is usually a robust and healthy housing market and history shows our regulators have generally done a great job at tempering any over-exuberance.

Do Australians have too much debt?

Our post-GFC experience is the same as all banks – our customers are capitalising on low rates to pay down their mortgage. While that makes growth challenging for us, we think it's great for our customers – and in the long run, of course, that's great for economic stability. It will provide the nation with a strong platform for sustainable growth.

Are property values too high?

If you look over the longer term, then no; in pockets perhaps prices have run a little ahead of where they should be. If borrowers are building equity – and they are – it provides a buffer against any pullback. We don't see danger signs at present.

Why are the banks so disliked?

If you look back 25 years there was a bank on every corner and no one paid transaction fees. Banks did a very poor job of explaining the market changes that forced them to close branches and introduce fees – and the fact is that opening up our economy to competition did change banking fundamentally. In recent years banks have done a lot of genuinely good work to improve their public standing. At Bendigo we like to think our Community Banking has helped because we've been able to actively engage people with their local bank. Australia is blessed with a strong and stable banking industry and I think most people are appreciative of that – doesn't mean they have to like you though!

Is the delay over the Government's budget measures harming the economy? 

Markets hate uncertainty and things remain uncertain, so yes.

What are the economic threats on the horizon?

Most obviously, Europe remains problematic. At best this is holding the world back; at worst it could yet drag it back into recession. From Australia's perspective, energy looms as an issue. The world has a glut of cheap energy at present, and for the immediate future, and Australia is an energy exporter. Depressed commodity prices will impact tax revenues and investment and this will drag on the domestic economy. It will also be interesting to see how the move to renewables plays out. If there is a seismic shift at next year's Paris climate talks, our current policy settings could leave us exposed. Past that, the threat of deflation on a global basis is something to avoid at all costs.

How should self funded retirees be encouraged?

Can I put in a product plug? There is an enormous amount of untapped wealth tied up in retirees' own homes and this is largely ignored in retirement funding. Bendigo's Homesafe equity release product frees up cash while enabling people to live in their house. We'd like to see the Government encourage super funds and others requiring long term assets to invest in this.  

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Steve James, Chief executive officer, Teachers Mutual Bank

Does the GST need to be changed? If so, how?

On balance, the GST should remain unchanged.  If there were to be any change (i.e. increase in rate or broadening in base) it should form a part of a comprehensive tax review.

Should the GST-free threshold for online retailers be lowered?

While online retailers already enjoy substantially lower costs than their bricks & mortar counterparts, they are up against considerable competition from overseas.  A level playing field for tax for all businesses in Australia is preferable, but I think it would create unnecessary complexity to lower the threshold for one particular group.

Will mortgage rates be higher or lower in 12 months?

It is possible that the RBA may cut rates at some point in the latter half of next year.  In any event, competition for lending will remain strong next year and there will be plenty of good offers in the market for borrowers. Fixed rate loans could increase slightly during next year.  

Are Australians too home-ownership obsessed?

Around 67% of us own our homes either outright or with a mortgage.  If it's an obsession, it's a healthy one, because home ownership is a sensible way to build wealth, for instance by using the equity in your property to invest.   However, Aussies shouldn't be too focussed on the traditional quarter acre block – units and villas are certainly suitable investments.

Do Australians have too much debt?

Australian household debt to income has only had modest growth in the past 10 years, but Australians have more personal debt than the citizens of any other country in the world (according to the Australian National Accounts).   However, wage growth has been strong, underlying asset prices remain high and Loan to Value Ratios are being managed, so it is not a major cause for concern.

Are property values too high?

Australian Property values are high in the capital cities, but overall house price to income ratio is currently at pre-GFC levels.  There is no question that it's particularly tough for first home buyers at present.  There is a strong need for more co-ordinated measures by both federal and state governments to provide affordable options or measures for first home buyers.

Why are the banks so disliked?

As a mutual bank, we don't generally suffer from consumer disapproval, because it's widely understood that we exist for the mutual benefit of our members.  Our customer satisfaction rates are consistently above 90%. 

Is the delay over the Government's budget measures harming the economy? 

With $30billion of cost reductions and additional revenue held up in parliament, I would say a qualified yes.

But consumer confidence has recovered after the budget announcement, so consumers may be becoming immune to the budget delays.  Business confidence increased on the back of the budget, but has been declining recently.

What are the economic threats on the horizon?

European country defaults are not being effectively managed, and present a looming threat.  Middle Eastern conflicts continue to be a concern. 

On the domestic front, the federal government has not yet set a clear plan for growth.  Managing the transition from the exploration and construction phase of the mining boom, to the extraction phase will be challenging, particularly around employment opportunities for surplus employees.

Falling commodity prices, the contraction of the manufacturing sector, and the ongoing problems of prolonged drought in the agricultural sector all present threats to some extent.

How should self- funded retirees be encouraged?

One option would be to allow mutual banks and credit unions to be able to distribute franking credits, enabling self-funded retirees to avail themselves of these.