ABA slams Greens bank tax proposal

by Adam Smith31 Oct 2011

The Australian Bankers' Association has slammed a Greens proposal to exclude banks from corporate tax breaks, claiming it constitutes a tax on superannuation.

The Greens have proposed excluding banks from the tax breaks, claiming they make excessive profits. ABA CEO Steve Munchenberg rejected the claim, and said bank profits are not excessive.

"The standard measure of profitability - return on equity - shows banks are in the middle of the pack compared to other industries. Of the 50 most profitable companies listed on the ASX, only two are banks," Munchenberg claimed.

Munchenberg argued that banks contribute more corporate tax than any other Australian industry, and claimed the Greens' proposal would amount to a tax on superannuation.

"The great majority of bank shares are held by households either directly or indirectly through their superannuation funds and retirement savings," he commented.

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  • by countrybroker 31/10/2011 11:08:50 AM

    This article goes a long way to confirm my suspicions tnat the Greens party in Australia are the new "socialists" , We need to be very careful of the Green's Australia ploicy agendas both public and hidden in the banking/mortgage/NCCP areas particulary as mortgage brokers, they are very concerning as they hold the balance of power in the Senate. Note; this is not a political statement ,I have no political affiliations and happen to think the SWANN / RUDD goverment did a great job during the GFC.