Labor has promised to establish a $640 million fund to give victims of banking misconduct a chance to fight for their rights if it wins the federal election.
The Banking Fairness Fund will raise $160 million a year from the country’s biggest banks to revolutionise the services available to Australians in financial difficulty.
The move adopts a key recommendation of the banking royal commission and will double the number of financial counsellors across Australia from 500 to 1000 at a cost of $320 million over four years.
The counsellors will provide advocacy, support and advice to an additional 125,000 Australians each year.
They will be able to assist people to pursue fair compensation through the Australian Financial Complaints Authority.
Labor leader Bill Shorten and frontbenchers Clare O’Neil and Jenny McAllister will announce the plan on Monday.
“A stronger, larger financial counselling sector is just one part of Labor’s plan to restore fairness to financial services,” they said in a joint statement.
Labor has also pledged to raise the threshold for compensation that banking victims negotiate through AFCA.