The contentious $6.2bn bank levy introduced during the May federal budget passed the Senate late yesterday (19 June) night, news.com.au reports.
The bank tax will apply to ANZ, Westpac, NAB, CBA and Macquarie and is expected to raise $1.6bn in the first year.
A Senate committee report agreed with a request by the banks to review the levy in two years to examine its impacts, including if it is appropriate to introduce a sunset clause once the budget is in surplus.
The Australian Bankers' Association (ABA) welcomed the news of the report and urged the government to investigate the issue of double taxation to ensure Australian banks are not disadvantaged when competiting offshore.
“The committee has made a number of recommendations which recognise that the consultation process was truncated,” said ABA CEO
“This review was recommended by a number of banks and I’m pleased to see the committee take the concerns of affected banks seriously,” she said.
More to come...