Recently, the South Australian government announced it will implement its own state-based version of the federal bank levy, which is expected to raise $97 million in 2017-18.
In a statement yesterday, the Australian Bankers’ Association said an independent survey of 400 small business owners and managers over the past fortnight found that 65 per cent oppose the bank tax while 22 per cent support it.
More than 80 per cent said the tax will make South Australia less competitive while around 70 per cent said it will negatively impact the economy.
The survey also found that eight in 10 people believe the South Australian economy is in bad shape.
Meanwhile two-thirds of small businesses also said the SA economy has been a barrier to growing their business while six in 10 said the same about government taxes.
Further, seven in 10 respondents expressed concern that the Treasurer’s refusal to rule out imposing ad hoc taxes on other parts of the economy would be bad for business sentiment.
ABA chief executive Anna Bligh said the results reflected the small business community’s outright rejection of the government’s proposed bank tax.
“The results are clear. South Australian small businesses oppose the proposed bank tax. Economic conditions in South Australia are tough enough. The last thing businesses want is a new tax that they believe will make doing business in their state much harder than it already is,” Ms Bligh said.
Bank tax is a badly formed idea. It has been based on an erroneous premise that banks make excessive profits. Based on return on equity their returns are not so good.