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
The ABA urges the final passage of the Cash Distribution Framework Bill 2026 and accompanying legislation through the Senate this fortnight. ABA CEO Simon Birmingham said the legislation was a critical safety net to protect the long-term availability of cash for Australians who still rely on it. “Cash remains an important payment option for many Australians,… Read more »
E&OERadio Interview2SM Sydney12 August 2026 Topics: Census scams Tim Webster: And Simon Birmingham is the CEO of the Australian Banking Association, and he’s jumped on the line for us. G’day, thanks for your time. Simon Birmingham: Good morning, Tim. Good to be with you. Tim Webster: Yeah, I did mention it to the listeners yesterday,… Read more »
Australian banks are warning households to be on the look-out for Census related scams as criminals look to get their hands on personal and financial information. Key tips for staying Census safe: ABA CEO Simon Birmingham said banks were on high alert for scams as criminals look to cash in on this week’s Census. “The… Read more »