The Green Party has caused a stir following the release of its proposal for a 20 basis points levy on bank assets in excess of $100 billion. Now, in a scathing defence of major banks, the ABA has dubbed it the ‘retirement savings tax’.
On Friday, Greens Deputy Leader and banking spokesperson, Adam Bandt, outlined his proposal for a ‘Public Support Levy’ on the big four banks in return for what it calls the implicit ‘too-big-to-fail’ policy of the government that underwrites their activities.
But ABA CEO, Steven Münchenberg, has rejected the call, claiming it would effectively amount to a tax on Australians’ retirement savings.
“The majority of bank profits are paid through dividends to Mum and Dad shareholders and superannuation funds. Taxing banks’ profits reduces those returns for working Australians saving for their retirement through superannuation accounts and to retirees who are increasingly dependent upon positive business profit growth.”
He also denies claims that major banks’ profits are ‘excessive’, saying the facts don’t support this contention.