‘BIG 5 LIKELY TO
There is little leverage to mount public support against move, say sources
SYDNEY inquiry into misconduct in the banking sector.
Treasurer Scott Morrison justified the tax as necessary to get the budget back into the black and also tapped into popular opinion, saying the charge was just a small portion of the banks’ profits.
He cautioned the so-called Big Five — Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group Ltd, National Australia Bank Ltd and Macquarie Group Ltd — against passing the costs on to consumers.
The tax resembles a charge imposed on big mining companies in 2010 that was ultimately redesigned after an industry advertising campaign which helped unseat the then Labor prime minister, Kevin Rudd. Banking sources said they had little leverage to mount a similar campaign due to modest support within Parliament.
“It is a done deal, I don’t think you can put a wedge in that,” said another representative of the Big Five.
The affected banks all came under share price pressure late on Tuesday and again yesterday morning, before some of their losses were pared. Reuters
Australian Treasurer Scott Morrison justifies the new tax on banks as necessary to get the federal budget back into the black.