Given the small percentages involved, South Australia’s bank levy won’t interfere with the federal government’s levy, and would arguably be compatible with it.
Applying the GST to banking has much sounder economic underpinnings than the current levy, would have raised much more revenue, and would have applied to all banks rather than just the big banks.
Contrary to what Labor and the banks have predicted, revenue from the bank levy will likely be higher, even with deductions.
The government’s best ideas for how to grow wages and incomes do not inspire confidence.
Treasurer Scott Morrison said Australia’s banks have a return on equity about twice that of banks in other advanced economies. Is that right?
Countries that have similar banking levies have seen them passed on to customers.