30 June 2017
Sydney, 30 June 2017: South Australian Premier Jay Weatherill’s claims that banks don’t pay their fair share of tax, including the goods and services tax, is wrong, the Australian Bankers’ Association said today.
On FIVEaa radio this morning, the Premier said banks “don’t pay GST on financial services” and are “getting a $4 billion holiday per year.”
ABA Executive Director – Industry Policy Tony Pearson said: “Banks paid more than $14 billion in tax to governments in 2016.
“The banking industry is the largest corporate taxpayer in this country and labelling banks as undertaxed is just plain wrong,” he said.
“The Premier has misrepresented how a GST on financial services would work. If a GST was introduced on financial services, customers (not banks) would pay more for their financial products and services.
“This is because GST is a direct tax on consumers imposed by the Government. For example, when you buy a pair of shoes you pay a 10 per cent tax on the cost of the shoes to the Government.”
Mr Pearson said the Premier should stop misleading the people of South Australia about the contribution banks make to fund essential public services, and be straight about the real reason for his outrageous cash grab.
“The Premier claims the revenue raised from the tax will help fund a job creation scheme. The fact is the tax will reduce the appetite for investment in South Australia, make the state less competitive and negatively impact on jobs.
“South Australia needs investment, growth and jobs, not a tax on the industry that helps create all three,” Mr Pearson said.
“The fact that many businesses have come out this morning in opposition to the tax is a clear signal the proposed tax will have an impact on every South Australian.”
ENDS
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
Latest news
Banks are on standby to support customers across the Mid-North Coast and Hunter regions impacted by the current severe weather and flooding. ABA CEO Anna Bligh said with torrential rain and flooding taking place, banks were activating financial assistance and relief to support their customers. “Banks recognise that this is a very challenging weather event… Read more »
Michael McLaren (Host): Well, here we are at the Easter Show, the great celebration of country life in the city, but it’s also an important platform this to better understand the challenges that the regions face. Now, yesterday, we looked at the floods. Today, I want to look at the banks. Now in the regions,… Read more »
The ABA is reminding customers across North and Far North Queensland that they don’t have to tough it out on their own, as they continue to recover from February’s severe flooding event. ABA CEO Anna Bligh recently met with Queensland’s State Recovery Coordinator Andrew Cripps to discuss how banks can assist customers facing financial difficulty… Read more »