The South Australian government's plan for a tax on the major banks is doomed

Photo; Cameron Spencer/ Getty Images.

The South Australian state government’s plans to introduce its own tax on the four major banks looks doomed.

The Liberal opposition, led by Steven Marshall, today resolved to opposed the tax, which would have raised $370 million over four years.

With the opposition set to vote with two MPs from the Australian Conservatives and the support of the Nick Xenophon team, the tax cannot pass into law.

The Advertiser reports:

Mr Marshall said his party felt the extra cost faced by the banks would be passed on to customers.

“The Liberal team has listened to South Australians who cannot afford to pay more Labor taxes and are crying out for new investment and job creation,” he said.

“We will take decisive action to protect South Australians from the Weatherill Labor wrecking ball by voting against this new tax.”

Banking industry lobby the Australian Bankers’ Association welcomed the development. ABA executive director Tony Pearson said: “The growing outcry from South Australians about this tax shows they understand it would have a serious impact on ordinary households and the cost of doing business in their state.”

He added: “The SA Bank Tax would also place South Australians at a competitive disadvantage to the rest of Australia, at a time when it can least afford to be and when economic policies are needed to attract investment, drive growth and create jobs in the state.

“The banking industry wants to work with South Australians to grow their business, which will deliver greatly needed new investment, create new business opportunities and deliver new jobs.”

There’s more at The Advertiser.

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