BANKS AND BANKING – TAXATION – AUSTRALIA

Morrison bank levy gets over the line

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Original article by Joe Kelly
The Australian – Page: 4 : 20-Jun-17

The Senate has passed a bill to impose a levy on the nation’s five largest banks, after the Australian Labor Party voted for it. However, One Nation opposed the levy, with Senator Brian Burston describing it as a "lazy, ugly, cheap solution". The Senate’s eco­nomics legislation committee has recommended that the levy should be reviewed within two years. Australian Bankers’ Association CEO Anna Bligh says any future review should consider adding a sunset clause to the legislation, but this has been ruled out by Treasurer Scott Morrison.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, ONE NATION PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, LIBERAL PARTY OF AUSTRALIA

Levy a shock for foreign investors: NAB

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Original article by James Eyers
The Australian Financial Review – Page: 18 : 16-Jun-17

The Senate Economics Legislation Committee is currently investigating the bill to implement the Federal Government’s proposed bank levy. National Australia Bank CFO Gary Lennon says foreign investors have expressed concern to him about the tax, including the rushed manner in which it has been adopted. Amongst other things, submissions to the committee have argued that the bill should include a "sunset clause" and that the tax should cover foreign banks.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. SENATE ECONOMICS LEGISLATION COMMITEE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE BANK LIMITED – ASX MBL, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BANKERS’ ASSOCIATION, ME BANK, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, CUSTOMER OWNED BANKING ASSOCIATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS

Clause gives ‘unfettered power’ to alter levy: ABA

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 7-Jun-17

Australian Bankers’ Association CEO Anna Bligh has expressed concern that a clause in the bank levy bill would empower the relevant government minister to change the methodology used to calculate the tax. She has also called for the bill to include a "sunset clause" for the levy. Bob Deutsch of the Tax Institute adds that the bill would enable the Government to adjust the levy via a legislative instrument to ensure that revenue meets its forecasts.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, THE TAX INSTITUTE, BUSINESS COALITION FOR TAX REFORM

Bank levy slammed as ‘hate tax’

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Original article by Phillip Coorey, James Frost
The Australian Financial Review – Page: 1 & 4 : 1-Jun-17

Australia’s banks have conceded that the Federal Goverment’s proposed levy is likely to proceed, but they have expressed concern about the "aggressive" stance of Treasurer Scott Morrison regarding the sector. Financial System Inquiry chair David Murray has described the levy as a "hate tax" which raises the question of whether the Government will target other sectors. Australian Foundation Investment Company MD Ross Barker has also expressed concern about the Government’s stance on the banks, given their importance to the economy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG

Labor push for 49.5pc top tax hit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 12-May-17

Federal Opposition Leader Bill Shorten has used his Budget reply speech to outline measures to provide funding for the National Disability Insurance Scheme. He advocated retention of the two per cent temporary deficit levy for high-income earners and increasing the Medicare levy by 0.5 per cent for people on incomes of more than $A87,000. This would increase the highest marginal tax rate to 49.5 per cent. Shorten also said the Opposition supports a proposed bank levy, although he stressed that the cost should not be passed on to customers.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, DELOITTE ACCESS ECONOMICS PTY LTD

Bitter war on banks escalates

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Original article by Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 8 : 11-May-17

Federal Treasurer Scott Morrison says Australia’s five largest banks should avoid passing the cost of a proposed $A6.2bn Budget repair levy on to customers, warning that it would make them even less popular. Morrison has also advised that the levy will not be abolished once the Budget returns to surplus, although Australian Bankers’ Association CEO Anna Bligh has called for it to be scrapped once the deficit is eliminated. Meanwhile, shadow treasurer Chris Bowen says a royal commission into the bank is still needed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, LIBERAL PARTY OF AUSTRALIA

Labor bars banks’ super-profits tax

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Original article by Rosie Lewis
The Australian – Page: 4 : 11-Apr-16

Australians Greens MP Adam Bandt has told Sky News that the nation’s largest banks should be subject to a new tax. He argues that the major banks can access the wholesale funding market at much lower rates than smaller rivals as the Federal Government will provide bailouts in the event of financial problems. However, Opposition Treasury spokesman Chris Bowen says the Australian Labor Party will not introduce a "super-profits" tax on banks.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY