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
ABA CEO Anna Bligh: Well, here we are on the front line of the fight against scams. This is one of Australia’s largest banks, and the team of people here talking with customers, trying to protect customers and fight against scammers. Today, here we are launching a new piece of technology called Confirmation of Payee…. Read more »
Australian banks have today unveiled their latest scam fighting technology, with the launch of Confirmation of Payee – a new name-matching service designed to help protect customers from being tricked into sending money to criminals. Banks have invested $100 million in this new technology which is a key initiative of the sector’s Scam-Safe Accord –… Read more »
Former Federal Finance Minister and Senate Leader, The Hon. Simon Birmingham, will join the Australian Banking Association as Chief Executive Officer. ABA Chair and National Australia Bank CEO Andrew Irvine today announced Mr Birmingham’s appointment, replacing retiring CEO, The Hon. Anna Bligh AC. “We are delighted to have Simon lead our industry and help ensure… Read more »