The Government Guarantee was established by the Federal Government in October 2008 as an emergency measure to protect customers with large deposits from loss in banks, building societies and credit unions in the event of financial collapse.
A number of international banks were failing at the time and the Government Guarantee offered comfort to Australians who were largely unaffected by the financial crisis.
(The Government Guarantee has also been called the Financial Claims Scheme or part of the Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding.)
The deposit level was originally set at up to $1 million however from 1 January 2013 this was permanently reduced to up to $250,000.
If you require any further information, please call our Customer Contact Centre on 13 15 63.