Australian banks re-risked

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A fading China, downgrades, levies, housing bubbles and no growth. Why would you own an Aussie bank? UBS see more to come:

South Australia hits the banks with a further State Bank Levy

In today’s South Australian budget, Treasurer Tom Koutsantonis announced it will be introducing a state based Bank Levy on the Major banks and Macquarie. The SA Bank Levy will be set at 6bp of applicable liabilities per annum, the same as the Federal rate. The amount charged by SA is proportionate to its share of GDP (~6%) and is expected to raise $97m in 2017-18.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.