The Australian Banker’s Association has called on all Australian states to reject any move towards implementing a major bank tax similar to the levy recently announced in South Australia.
In a statement yesterday, ABA executive director of industry policy Tony Pearson said the South Australian bank levy, announced last week, will be negative for investment, growth and jobs in SA.
Mr Pearson said other states would be misguided to follow SA’s lead in introducing a tax on banks.
“The strong consensus is that this will be negative for investment, growth and jobs in South Australia. The state needs incentives to attract business, not new taxes that will discourage businesses from investing in new projects and employing people,” Mr Pearson said.
“This should not set a precedent for other states. It is a classic case of poor economic management.
“We call on every premier and first minister to confirm they will not follow this poor policy precedent and instead will continue to foster investment, growth and jobs in their state or territory.”
Last week, South Australian Treasurer Tom Koutsantonis announced the state’s version of the federal bank levy, which is expected to raise $97 million in 2017-18.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...