Aus­tralians want bank su­per prof­its tax on the agenda

The Pak Banker - - Front Page -

SYD­NEY: Bank prof­its are now run­ning at $1000 for ev­ery man, woman and child in Aus­tralia and grow­ing at 15 per cent per an­num says poll con­ducted by The Aus­tralia In­sti­tute. Eighty-one per cent of Aus­tralians be­lieve that the idea of a bank­ing su­per prof­its tax should be dis­cussed at next year's Tax Sum­mit, ac­cord­ing to a new opin­ion poll con­ducted by The Aus­tralia In­sti­tute.

Ex­ec­u­tive Di­rec­tor Dr Richard Den­niss said, "Aus­tralian con­sumers over­whelm­ingly sup­port the con­sid­er­a­tion of a bank­ing su­per prof­its tax. Aus­tralia's banks are enor­mously profitable, so much so that even in a 'bad year' dom­i­nated by the global fi­nan­cial cri­sis the big four still man­aged a profit of $20 bil­lion for 2009."

"Bank prof­its are now run­ning at $1000 for ev­ery man, woman and child in Aus­tralia and grow­ing at 15 per cent per an­num.

"There are some ob­vi­ous ben­e­fits for con­sumers in the Govern­ment's re­form pack­age but it fails to rein in the big banks which so bla­tantly ex­ploited their mar­ket power to al­most dou­ble the RBA's of­fi­cial in­ter­est rate in­crease in Novem­ber.

"We need to be clear about how we are go­ing to mea­sure the suc­cess of the pro­posed re­forms. It is the ex­ces­sive prof­its of the banks that started this de­bate and, as a re­sult, the only yard­stick by which we should mea­sure the ef­fec­tive­ness of the Govern­ment's re­sponse should be a sig­nif­i­cant re­duc­tion in those prof­its.

"The Govern­ment, the Op­po­si­tion and the Greens have all sup­ported the need to rein in the ex­ces­sive prof­its of the banks. The test for all pro­posed re­forms, there­fore, is not whether they seem like good ideas but whether they drive re­duc­tions in prof­its," said Dr Den­niss. -PB News

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