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Australia announces new bank levy

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The Australian Treasury minister Scott Morrison has announced proposals in his latest budget for a new levy on Australia’s biggest financial institutions, expected to raise AUD $6.2bn (£3.5bn) over the next four years.

The levy will cover deposit-taking institutions with ‘licensed entity liabilities’ of at least AUD $100bn, meaning Australia’s five biggest banks, ANZ Bank, Westpac, National Australia Bank, Commonwealth Bank and Macquarie. The rate of the levy will be 0.06% on these liabilities.

Anna Bligh, the chief executive of the Australian Bankers’ Association, called the move ‘a political tax grab to cover a budget black hole’.

The budget has also re-introduced measures previously floated to lower tax rates on large corporations. This would reduce the 30% rate currently paid by large corporations to 25%, along with those of all other corporations, by the 2025/26 fiscal year.

Issue: 1353
Categories: News