Weatherill Government completely wrong on tax paid by banks

Sydney, 27 June 2017: The Weatherill Government is wrong to claim that banks are under taxed, new data shows.

The Australian Bankers’ Association has today released a new report showing the banks targeted for a new tax in South Australia are actually among the highest corporate taxpayers in the country.

“South Australian Treasurer Tom Koutsantonis claims that a new tax will ensure ‘the sector contributes its fair share’, despite the fact that the industry paid over $14 billion in tax last year alone,” ABA Executive Director – Industry Policy Tony Pearson said.

“In terms of tax paid, it is banks first, daylight second. Banks make the highest contribution by far to help governments at all levels fund essential public services such as hospitals, schools and roads, and income support for those in need.”

The report, Taxes and other levies paid to governments in Australia by the banking industry, shows that in 2016 banks contributed over half of all income tax paid by the top 200 ASX companies.

“The Weatherill Government simply doesn’t get it,” Mr Pearson said.

“The banking industry makes a vital contribution to the community. Banks employ 140,000 people around the country – around 8,000 of those in South Australia.

“In 2016, banks paid $25 billion in wages and salaries to staff, $26 billion in dividends to shareholders – many of whom are mums and dads – and $66 billion in interest on bank deposits and bonds,” he said.

A copy of the report is available here.

ENDS

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

@austbankers

bankers.asn.au