Con't
BANK DEPOSITS ARE GUARANTEED BY THE GOVERNMENT - Guess again
the bank deposit guarantee scheme — provides up to $20 billion of deposit insurance to each eligible authorised deposit-taking institution as well as an additional $100 million in administration costs for deposits up to $250,000.

As of December 31, 2017, the scheme provided insurance for up to $890 billion in deposits.

However, the federal government has not made any financial provision to pay money under the scheme if it ever was required to do so, even though it was advised to do so by the International Monetary Fund in 2012.

During an economic recession or even a financial crisis, federal government revenue would be expected to decline substantially, causing the budget to experience a significant fiscal deficit.

Given that gross government debt is expected to peak at $578 billion by 2020-21, it remains a questionable assumption whether, under severe economic conditions, the federal government would be able to finance its existing debt, finance new debt resulting from a larger budget deficit as well as provide billions of dollars under the Financial Claims Scheme, especially if multiple financial institutions require deposit insurance.

Under such conditions, the federal government would not be legally obliged to make insurance payments to depositors if eligible institutions became insolvent, but rather it would retain the legal discretion as to whether or not it wished to activate the scheme.

According to the 2018-19 budget papers, the preferred method of meeting the financial obligations under the Financial Claims Scheme is via a new bank levy. If a new bank levy is imposed, then the deposits under the scheme are ultimately guaranteed by the customers and shareholders of other banks as opposed to the federal government.

Philip S finally someone who knows what I'm talking about.
Not only are you quite right but because you have a better understanding of this topic and the more relevant details you have refreshed my memory on a couple of issues.
If memory serves, my last memory on the topic of this bank or govt guarantee on depositors bank accounts, was that the feds said they had x amount of billions stashed away to cover our bank accounts, but it was later leaked that this amount was only a fraction of the money really needed to cover the actual amount of consumer deposits.
These bastards are openly lying to us and ultimately will stab us in the back in preference to looking after these bloody banks.
If I had the stones and the where-with-all to shut them all down, preferably 6ft down, I would, but I am not such a person.
But I can dream.
When is this karma supposed to kick in?

While our story's are worth the read, and some highlight you need to have been in debt to get a good loan history just maybe we are over looking the real problem, that house hold debt is horrific, and a very real danger to the economy, add the housing debt, the prospect of interest rates rises, and the new rules about granting credit we read about, and we stand very close to very real financial pain not seen in our life time news story this morning highlights China is standing on egg shells and this country as a whole will suffer if they do, time to get out of debt but time too to know some never can

if and it may well be true, as said in this mornings press experts are saying we are in a slow moving credit squeeze right now, this topic will impact harshly soon

Philip S,
The power of the government to confiscate gold bullion is an anachronism; It was an emergency provision considered necessary in 1959 when the value of our dollar was linked to gold. But nowadays there are no circumstances in which it would be needed, and it's probably only a matter of time before it's repealed.

The government need not put aside even a cent to guarantee bank deposits! It owns the Reserve Bank, so has unlimited credit. There are no circumstances whatsoever in which it would be unable to pay the full amount.

_____________________________________________________________________________________

Belly,
If interest rates rise, it will only be by a small amount because the amount of household debt makes the economy very sensitive to interest rate rises.

While people continue thinking that a 'budget' is a small Australian parrot, they will continue to sink deeper and deeper into debt.