2 November 2017
The defeat of the Bank Tax in the Upper House last night should send a strong signal to the South Australian Government that they should not continue to pursue the introduction of a bank tax.
Business SA chief executive Nigel McBride said the Government should now listen to industry concerns, the business community, economic advisers, overseas investors and consumers, who have repeatedly warned that this tax is a bad idea for South Australia.
Mr McBride hoped the South Australian Government would recognise their argument to introduce the tax was flawed, and would now consider removing it from the Budget Bill as they did with the car park tax in 2014.
“This is a deeply unpopular tax and the State Government needs to recognise that the Budget Bill will not be passed while the bank levy is embedded within it,” Mr McBride said.
The bank tax has already deterred investment in South Australia, and if passed at a later date, will punish small business owners, mum and dad investors, and for example, anyone with a superannuation account.
“Despite the Bill failing to be passed, the tax has not yet been removed and we urge the State Government, the Opposition and the Independents and minor parties to recognise it should be taken out and the Bill passed with amendments,” Mr McBride said.
“The State Government set a precedent three years ago by removing the car park tax from the Budget Bill, and it should follow the same path now.”
With record high power prices, blackouts and unreliable generation, entrenched unemployment and low population growth, the bank tax would further diminish the state’s reputation nationally and internationally.
“This bank tax was a bad idea, and we need to encourage investment rather than kick consumers when they’re down. We need to encourage businesses to move to South Australia to boost our economy and population, but this tax made the state less attractive.
“It was a dumb tax, an arbitrary tax, and a tax by ambush and it would punish all South Australians.
“We congratulate those who stood firm and voted against it.”