9News: CBA CEO hits back at bank tax

The big banks are accusing the Turnbull Government of rushing its policy to slap them with a new tax.

CBA CEO hits back at bank tax

 

Ross Greenwood: As the chief executive of the CBA, Ian Narev does not surprise easily but he says the new banking tax in the budget was a shock.

No forewarning, no consultation.

Ian Narev: Our expectation was if that was going to come, somebody would give us a call and consult us about how to nail down the details and that didn’t happen.

Ross:  Who ultimately pays for an increase in Bank taxes?

Ian: This can’t be absorbed and go into the ether.

Ultimately this falls on every Australian who is a customer or a shareholder of a Commonwealth Bank or the other four banks involved.

Ross: But it’s a tough argument because Australian banks are among the most profitable in the world.

Why can’t they afford to pay more tax?

Ian: Well, the whole economy should want profitable banks and we’ve seen around the world what happens when you don’t have profitable banks.

They saw successful companies who are already the largest tax payers; they said we can go there to get more because the opinion polls the next day will be positive.

Ross: The treasurer, though, is having none of it.

Scott Morrison: It is in.

This tax is staying on the banks.

This is a fair and reasonable tax on our banks – over $30 billion dollars in pool profits and this is $1.5 billion out of that more than $30 billion.

Ross: Trying to work out what they’ll pay and how the chief financial officers of the big four banks plus Macquarie.

They met Treasury officials this morning for two hours.

Peter King: Ah, a few more questions and answers but we’ve confirmed that their levies deductible so that’s they useful.

Reporter:  So does that mean that you won’t need to pass it on to your customers?

Peter:  We’ll be working through what we do with the levy.

Ross: What’s clear is that our biggest banks are up for the fight.

But right now, there’s confusion about what the tax is, how will be collected, and indeed how we levy on the biggest companies in Australia.

The Bankers Association says Treasury officials couldn’t answer more than 20 important and basic questions.

Anna Bligh: There is no doubt that this policy was rushed into the budget at the last minute as a smash-and-grab for money to fill a hole.

Ian: The question is, is it good for the economy?

We don’t think so

Ross: Banks have until midday Monday to make submissions and put that case to the government.

Ross Greenwood; Nine News

 

Source: 9News/Ross Greenwood

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