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.”
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
“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”
The Treasurer has indicated that the federal government is closely monitoring the situation.