Federal Treasurer, Scott Morrison has hit back at former Treasury secretary, Ken Henry’s criticism of the Government’s proposed major banks levy reinforcing that Henry is now a chairman of one of those major banks and was once an advocate of a tax on bank deposits.
Speaking to the media in western Sydney, Morrison described the bank levy as both fair and modest and also reminded people that Henry, who is now chairman of the National Australia Bank (NAB) was one of the authors of the mining tax.
However NAB later pointed out that Henry had left his Treasury position before discussion of the tax on bank deposits had become an issue.
Discussing the bank levy, Morrision said: “It will be helping us pay for hospitals and for schools and for pensions, not just for the next few years but well into the future”.
“… in fact, when Ken Henry was Treasury Secretary, he has actually advocated a tax on bank deposits,” Morrison said.
“Now, we don’t think a tax on pensioners’ bank accounts is a good idea. Nor did we think his suggestion about a mining tax was a particularly good idea either. And one of the reasons why it turned out not to be a good idea was because it actually didn’t raise any money.”
Morrison said he was not surprised the big banks were trying to delay the introduction of a tax on them.
“That is to be expected. I am sure Ken will continue to talk his book. But Australians know that this is a fair measure. It will come into place on 1 July. The legislation will be introduced when we go back to Parliament. It has the support of the Parliament and we will just now work with the banks constructively to ensure its effective implementation,” the Treasurer said.
