7 June 2017
Today’s weak economic growth figure highlights the need to maintain a strong banking industry, the Australian Bankers’ Association said today.
“While the economy grew by a soft 1.7 per cent over the year to the March quarter, the finance and insurance industry grew by a strong 4.0 per cent,” ABA Chief Executive Anna Bligh said.
“Also, the latest inflation figures show that the price of financial services has increased by less than overall inflation, and by much less than some essential items like child care, education, and health.”
Ms Bligh said in this environment the Federal Government’s new tax on major banks was contrary to the national interest.
“You don’t win the race by knobbling your fastest runners,” she said.
“And you can’t tax your way to prosperity. The Government needs to rethink this new tax.”
Over the three years ending June 2016, productivity of the finance and insurance industry has been on average 2.6 per cent per year, nearly four times higher than the overall market sector (on average, 0.7 per cent per year).
ENDS
Contact: Nic Frankham 0435 963 913 (Stephanie Arena is on leave)
Latest news
The ABA welcomes the release of the Council of Financial Regulators’ (CFR) reviewinto small and medium-sized banks. ABA CEO Anna Bligh said the review findings and recommendations would helpensure there is a more level playing field for Australia’s small and mid-tier banks. “This is an important step forward in ensuring Australia maintains a strong andcompetitive… Read more »
EO&E Nadia: Banks has been a big topic of discussion on the show this week because, of course, we’ve just been talking about behavioural security that the bank is bringing in. Earlier, I was telling you during the week that older women can’t get a credit card in their own name. They’re secondary card holders… Read more »
The Productivity Commission proposal to tax business cash flow is an experimental change that hasn’t been tried anywhere else in the world. This tax increase risks putting more pressure on all Australians still struggling under cost-of-living pressures. While some businesses may benefit under this proposal, it risks all Australian consumers and businesses paying more for… Read more »