Via the AFR:
The chief executive of the Australian Bankers’ Association Anna Bligh has zeroed in on the development of government’s major bank levy by criticising the lack of industry consultation and the shifting series of rationales put forward for the levy.
“Neither appropriate process have been followed or sufficient consultation been allowed,” Ms Bligh said. “The government has changed the rationale for the levy on multiple occasions.”
Ms Bligh went on to criticise the governments “truncated” approach to tax policy and requested further access to Treasury modelling.
“This is an entirely new tax on activities that have never been taxed before on a not just a single sector but five companies within that sector. Decisions have been made in a very short period of time without due consideration about how that might affect other parts of the banks involved.”
She said that without access to Treasury’s original calculations that it would be impossible for to say whether or not the levy will raise the revenue forecast by the government.
The ABA also raised questions about the implicit government guarantee, saying there was widespread confusion about who it applied to and who would be saved in the case of a bank failure.
“It’s murky” she said. “Nobody readly knows what’s implied.”
This is rubbish. We all know which banks are guaranteed and why. The government has a perfect right to charge for it and has said so. Indeed it is still undercharging given the free deposit guarantee.
Just resign, Anna. You’ve sold out and are blowing smoke for rent seekers seeking to gouge the Australian people while still drawing a pension that they pay for.
It’s cringe-worthy stuff.
