Treasurer called on to release modelling of major bank tax

12 May 2017

Sydney, 12 May 2017: The Australian Bankers’ Association Chief Executive Anna Bligh has written to the Hon Scott Morrison MP calling on him to immediately release Treasury modelling of the major bank tax.

Ms Bligh said in order to meet the request by Treasury to comment on the draft legislation, the ABA was seeking further information by 5pm Tuesday 16 May on fundamental aspects of the bank levy, including:

  • Treasury’s modelling on the economic impacts of the bank levy, including the wider impact on Australian households and businesses.
  • Treasury’s technical analysis that underpinned the design of the tax, including the coverage of banks and the design of the levy.
  • Treasury’s modelling including assumptions of the total revenue projections to be collected by the bank levy over the forward estimates.

Ms Bligh said it was no longer acceptable to keep the banks or the Australian community in the dark about a $6.2 billion political tax grab that would have a major impact on all sections of the Australian economy.

“Senior executives of the major banks in good faith attended what they expected to be a comprehensive briefing from Treasury yesterday, only to find to their dismay that Treasury was also in the dark,” she said.

“Fundamental questions about how this tax has been calculated and how the $6.2bn figure was reached have not been answered.

“Yet the Treasurer Mr Morrison continues to maintain that this tax will be ready for implementation by July 1, which is only around six weeks away.

“The Government seems to be putting intolerable pressure on its Treasury officials to meet a ridiculous political timetable,” she said.

“The major banks are terribly concerned about the risk of major unintended consequences of this new tax, and there is an urgent need for more detailed information so we can properly assess its impacts.

“This process is already breaking all the rules and conventions about major taxation implementation, including no prior consultation, no exposure draft legislation for public comment, and an extraordinarily brief timetable before a hastily designed tax is presented to the Parliament.

“Disastrous unintended consequences could flow from this rush,” Ms Bligh said.

A copy of the letter is attached.

ENDS

Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913

@austbankers

bankers.asn.au

Latest news

1 / 3
Media Release
One step closer to protecting older Australians
17 October 2019

The Stop Elder Financial Abuse campaign today held a Federal Parliament launch to brief Members and Senators on the actions needed to tackle the growing problem. Speaking at the launch Attorney General Christian Porter announced his plan for the next Council of Attorneys General meeting to set baseline standards of a national model of Power… Read more »

Read more
Transcript
Transcript – Media Conference 14 Oct 2019
14 October 2019

TRANSCRIPT E&OE  14 October 2019 Media Conference Parliament House Canberra  ANNA BLIGH:  Australia’s banks stand ready to assist the ACCC with this inquiry. Our banks are no strangers to public scrutiny and they look forward to providing information that will shed more light on the many complex factors that go into the determination of interest rates on Australian mortgages.    QUESTION:   Why have you passed on so little of the 75 percentage… Read more »

Read more
Media Release
Statement from CEO Anna Bligh regarding ACCC inquiry
14 October 2019

Australia’s banks stand ready to assist the ACCC in this inquiry. Banks are no stranger to public scrutiny and look forward to the opportunity to cast more light on mortgage pricing and the many important factors that influence the setting of interest rates. The first priority of Australia’s banks is the implementation of the Royal… Read more »

Read more