Banks paying their way claims ABA
The banking sector pays the most income tax of any industry in Australia and claims it is paying its way in contributing to government revenue and national prosperity according to paper released by the Australian Bankers' Association (ABA)
According to the ABA banks paid $13.6 billion in tax, of which $11 billion was paid to the Federal Government as corporate income tax, $1 billion as GST, $1 billon as state and local governments in payroll tax, land tax and council rates, and stamp duty and $500 million as income tax on life insurance assets and fringe benefits tax.
The ABA stated that compared with other OECD nations Australian banks paid a higher effective tax rate and had the smallest gap between their average effective tax rate and statutory corporate tax rate.
It also claimed banks paid an average effective tax rate of 28.63 per cent versus a statutory corporate tax rate of 30 per cent and that "in general, banks in other OECD countries pay far less than the statutory corporate tax rate."
The ABA claimed banks paid more tax than other industries and of the $36.4 billion in tax paid by companies within the ASX200 the six companies listed as banks paid $12.7 billion, or 35 per cent, of that tax figure, 17 times more than the next highest paying industry — mining and metals.
While the report separated out the tax levels paid by listed insurance firms and listed diversified financial services providers it did not make break down the levels of tax paid by the life insurance, wealth management and financial planning divisions of the banks covered by the paper.
AUTHOR
Jason Spits
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