Malcolm Turnbull and Scott Morrison must explain how they will ensure that the new bank levy will not be passed onto customers or shareholders in the face of an open challenge by the banks.
The bank CEOs are lining up today indicate that they will be moving to pass through this tax to customers, shareholders and employees.
Malcolm Turnbull needs to come out today and explain how he will ensure that the banks don’t pass on this tax.
Banking customers, employees and shareholders should not become the victims of the Governments fiscal incompetence and their inability to reign in the deficit.
On budget day the Treasurer said:
“They are a group that are in a position to help Australia’s Budget and we are asking them to do that, rather than hit mums and dads” and that it was “absolute nonsense” that every day Australians would have to pay for his new tax, insisting that it should be absorbed by the big banks.
The very next day some banks indicated they would do exactly that.
“A tax cannot be absorbed” Andrew Thorburn, CEO of NAB.
‘‘The cost of any new tax is ultimately borne by shareholders, borrowers, depositors and employees,’’ – Brian Hartzer, CEO of Westpac.
Whilst Malcolm Turnbull and Scott Morrison like to talk tough on banks, when the rubber hits the road they simply fold.
The big test for Malcolm Turnbull out of this budget is whether he will stand up to the banks and their CEO's and ensure that the cost of his levy is not simply passed on.
Malcolm Turnbull isn't serious about banking reform. Whilst the budget includes a $6 billion bank levy it also includes a $7b tax cut for them at the same time.
The only reason that the big banks know they can get away with trying to pass on this tax to customers is because they are confident that the Prime Minister will never stand up to them.
THURSDAY, 11 MAY 2017