fbpx
Skip to main content
Tropical Cyclone Seroja: Emergency Assistance

Weatherill wrong again on banks

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

@austbankers

bankers.asn.au

Latest news

1 / 3
Media Releases
Support available for customers affected by Tropical Cyclone Seroja
15 April 2021

Australian banks are ready to help customers in Western Australia who are rebuilding after the destruction inflicted by Tropical Cyclone Seroja. Communities in WA’s mid-west were devastated by the cyclone last week, when it crossed the coast near the town of Kalbarri. Geraldton, Northampton, Binnu, Chapman Valley, Mingenew and a number of other towns were… Read more »

Read more
Media Releases
Banks unite to help customers experiencing financial abuse
4 April 2021

Australian banks are launching updated guidelines on financial abuse as part of their continued focus on responding to family violence and elder abuse.

Read more
Media Releases
Banks call for consistent laws to prevent elder abuse
31 March 2021

Australian banks are urging state and territory governments to adopt consistent laws on powers of attorney to prevent elder financial abuse.

Read more