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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