Australia announces Tax on Big Banks

On the recently proposed Australia Budget 2017, the treasurer Mr. Scott Morrison unveiled the surprise package of placing tax over the biggest banks of the country from the month of July. As per the data enclosed in the budget 2017 of Australia, Mr. Scott Morrison mentioned 6 basic point levy over the deposits of the country’s 5 biggest banks.

It is estimated that the around 6.2 billion Australian dollar up to the year 2021/2022, so that the banks will get back their finances. The listed 5 biggest banks which the levy gets impacted are listed Commonwealth Bank of Australia, Macquarie Group, National Australia Bank, ANZ Banking Group, and Westpac Banking Corp.

As per the new levy proposed in the 2017 budget session of Australia, the above mentioned banks are supposed to pay charges for all their liabilities. However, the deposits done by the individual customers and also by the business persons won’t be charged under the newly proposed levy.

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According to the recent survey it is founded that the 4 banks from the above listed 5 biggest banks of Australia together holds around 80% of the entire nation’s market. Also those are extremely profitable for the past several years.

For the past few years, the government has initiated several new reforms in order to protect consumers and to boost the transparency of the nation’s bank sectors. However, the Australian bank association head pointed the moves taken by the government as the direct attack over the nation’s growth and it will surely impact in job opportunities and other growths.