Payback time for banks: Greens
Greens MP Adam Bandt said the levy, which could raise more than $8 billion over four years, would ensure that the "big four banks paid a fair contribution for the public support they receive".
"[They] are making record profits, of about $24 billion in the past year. These record profits off the back of consumers are underpinned by an implicit 'too big to fail' guarantee from the government," a party statement said. "If the banks went to the wall the taxpayer would bail them out." It said they were taking all the profits while taxpayers took all the risk.
Mr Bandt said such a levy would bring Australia into line with other parts of the world.
"Our banks are in rude financial health and are the world's most profitable banks. The reason why is that they have the government and the public standing behind them giving them a leg up that no other industry has," he said.
The Greens have previously been strong advocates of the mining tax.
Frequently Asked Questions about this Article…
The Greens are proposing a 0.2 per cent levy on bank assets that exceed $100 billion, aimed at the country’s biggest banks.
The proposal targets the 'big four' banks in Australia — i.e. the nation’s four largest banking groups — though the article does not list their names.
Greens MP Adam Bandt says the 0.2 per cent levy could raise more than $8 billion over four years.
The Greens argue the big banks are making record profits (about $24 billion in the past year) while benefiting from an implicit 'too big to fail' government backstop, so a levy would ensure they pay a fair contribution for the public support they receive.
In the article, 'too big to fail' refers to an implicit guarantee that the government and taxpayers would bail out major banks if they collapsed, a support the Greens say gives banks a competitive advantage and underpins their profits.
According to Adam Bandt, the levy would bring Australia into line with other parts of the world, though the article does not specify which countries or measures are being referenced.
The levy would apply at a rate of 0.2 per cent to any portion of a bank’s assets that exceeds the $100 billion threshold — only assets above that threshold would be taxed under the proposal.
Yes. The article notes the Greens have previously been strong advocates of a mining tax, indicating they have promoted sector-specific levies in the past.
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