Today the South Australian Liberal Party, led by Steven Marshall, announced it will oppose the State bank levy announced in the recent State Budget. From day one, the South Australian Business Chamber has led the charge advocating against this tax, not only for the additional costs it will impose on small business, but equally for the damage it will cause to South Australia as an investment destination.
The Australian Conservatives Party and NXT Party have also indicated their opposition to the State bank levy and it is now likely the bill will not pass through the South Australian Legislative Council.
This proposed levy, based on the national levy, was due to take effect from 1 July and only sends another investment signal that South Australia is an uncompetitive place to do business. There is no doubt that the additional costs will also be passed back to South Australian consumers, including businesses. And, as energy costs continue to wreak havoc across the State, we simply cannot afford another blow that adds to the perception that our State is a bad place to invest.
There is no underlying policy rationale for a singular state such as South Australia to impose a tax on banks, simply rationalised by their perceived unpopularity. If this tax goes ahead, then what other profitable businesses will be targeted next?
The South Australian Business Chamber’s role is to promote the growth of the entire State’s economy. We need big and small business alike to be successful here. The banks are major employers and investors in this State and, regardless of whether or not they are universally popular, jobs are jobs and investment is investment. In a State with the nation’s highest unemployment rate we need to ensure we do everything possible to secure both.
The South Australian Business Chamber CEO Nigel McBride said “the Liberal Party today have stood up for South Australian business and their decision will protect the investment potential of our great State”
“With the nation’s highest rate of unemployment and world’s highest electricity costs, South Australian businesses cannot afford additional costs imposed through the proposed bank levy”
“From day one, the South Australian Business Chamber has lead the charge advocating against the SA bank levy on behalf of the small to medium sized businesses that will ultimately wear its cost”
“While the State Government will now have to find new savings in its Budget, with an $8.3 billion wage bill, a 1.25% efficiency dividend alone would offset the ‘potential’ lost State bank levy revenues”
“The South Australian Business Chamber also acknowledges the Australian Conservative Party and NXT Party for their opposition to this tax on business and investment in South Australia” he also said.
