Now a bank tax, as Labor runs out of money again

[nero_bolt]

More scrabbling for cash by glad-spending Labor - and another tax:

The federal government will prop up the budget bottom line with a new levy on banks that will be badged as providing insurance in case future bailouts are needed.

The Australian Financial Review has learned that the government’s economic statement, set to be released Friday, will contain a deposit insurance levy as recommended by the Council of Financial Regulators, which will raise funds to underwrite any Australian bank should it need assistance in the future.

The proposed levy would be between 0.05 per cent and 0.1 per cent. Presently, the government guarantees deposits up to $250,000 without charging the banks.

A senior source said the levy ... would raise less than $1 billion over the forward estimates but build over the outer years.

The revenue raised by the levy will also be added to the budget bottom line, helping the government offset a forecast plunge in revenues since the May budget and meet its target of returning to surplus in 2016-17…

The source said while the money collected would count as revenue, should the fund ever be drawn upon it would count as expenditure.

But don’t call the bank tax a tax, just like you must not call the carbon tax a tax:

At a press conference Thursday morning, the Treasurer said “we have no plans to tax banks’’.

The original idea was for a levy half of what this desperate government now wants to charge:

[The Council of Financial Regulators] says a fee could be between 0.02 and 0.05 of a percentage point, set at the same rate for all institutions, and the funds collected in a “ring fenced” special purpose fund.

Commonwealtrh Bank shares took a hit:

And whose idea was this? From March 8:

The Australian Greens have proposed a new tax on the big four banks, in exchange for the federal government’s protection to ensure they do not fail…

The minority party has proposed a 0.2% fee on all bank assets above $100 billion, which would apply to ANZ Bank (ASX: ANZ), Commonwealth Bank (ASX: CBA), National Australia Bank (ASX: NAB) and Westpac Banking Corporation (ASX: WBC).

Since Rudd returned to the prime ministership, he has devastated the salary packaging industry, belted smokers, hit banks shares and slashed car sales.

[the_hawk*]

Great there goes more of my money after already paying tax to make it.

At least I will be able to claim it as a tax expense

[lakeland27]

pffftt . etc. i lost  0.3 per cent. on the value of a few westpac shares i think.  the shares have gained a heck of a lot more overall under swannie though. thanks swannie

[lakeland27]

do you own any of the big four hawk ? been good ay ?

[the_great_she_elephant]

Geez, Nero, I thought you'd be pleased - after all, someone has to make sacrifices to keep you in the manner to which you've become accustomed.

[lakeland27]

 actually the Westpac site has been down all day, anyone know when it will be back up ?

[just_me_karen]

It was still down when I tried... Very annoying because I had to used old fashioned telephone banking

Banks make a motza profit so I'm glad they'll be contributing a bit of it to our society. After all, it's protection against a bailout and I'd bet they'd have their banker hands held out begging for help if they ever get in trouble. It's more of an insurance than a tax.

[j*oono]

Lakeland, I thought it was down last night but when I entered the web address instead of using my bookmark it worked.

I just tried again and my bookmark gets an error 404 but the site itself is ok.

[newstart2380]

Hi Nero, what so you mean again they ran out of money long ago when Julia and her now defunct cronies got the sack, where we go from here is anyone's guess.

[lakeland27]

thanks, j*oono can't log in. i might try another way as you suggest.