2 October 2017
The Australian Bankers’ Association has responded to reports in the West Australian today that the WA Government would look at a bank levy to make up for unequal GST allocation.
“It is disappointing that the Western Australian Government is considering targeting one industry in its attempt to restore the state Budget,” ABA Chief Executive Anna Bligh said.
“Bank customers and shareholders should not be held to ransom in political brinkmanship between WA and Canberra,” she said.
“As the ABA outlined in our submission to the Productivity Commission GST review, there are some unintended outcomes from the current system for allocating GST.
“WA is rightly questioning how they only receive a GST share of less than 35 cents in the dollar,” Ms Bligh said.
“But a new tax on banks is not the answer. It is short-term political thinking that will cause long-term economic damage.
“Banks are already the largest corporate taxpayers in the country and contribute significantly to the WA Budget through payroll tax,” she said.
“Banks drive economic activity in WA through loans to individuals and small businesses.
“WA needs to grow its economy and create jobs, not introduce new taxes,” Ms Bligh said.
Contact: Stephanie Arena 0477 470 677
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”
“What is underpinning this bank failure is a number of things, but not least of all, it’s a very niche bank with high exposure to one part of the economy. And that’s the part of the economy that’s been quite volatile and troubled”