Nicholas Hossack of the Australian Bankers' Association has addressed the Senate Select Committee on Housing Affordability in Australia. Hossack claims that the nation's tax system has contributed to a fall in bank deposits since the 1990s, with money now going into tax-friendly superannuation. He claims that this has ultimately exacerbated Australia's housing affordability problem. According to Hossack, banks have been forced to rely more heavily upon foreign sources of savings. He claims that when offshore interest rates rise, Australian banks have to also raise their rates.
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