The Western Australian Government should look beyond banking and target more than one industry if it needs to introduce a tax levy to make up for unequal goods and services tax (GST) allocation, according to the Australian Bankers’ Association (ABA).
ABA chief executive Anna Bligh responded to reports of the possible bank levy, and said the industry should not be the sole target for sourcing funds.
“Bank customers and shareholders should not be held to ransom in political brinkmanship between WA and Canberra,” she said.
“It is disappointing that the Western Australian Government is considering targeting one industry in its attempt to restore the state Budget.
“A new tax on banks is not the answer. It is short-term political thinking that will cause long-term economic damage.”
The ABA previously outlined potential unintended and negative outcomes from the current GST allocation system in a submission to the Productivity Commission (PC).