Australia's «big four» banks have launched a second strongly worded attack on the government's new levy on the country's largest lenders.
Commonwealth Bank, Westpac, National Australia Bank and ANZ told shareholders they would be required to pay a combined $1.4 billion in annual taxes, and put their dividends at risk.
The announcements were made in the form of strongly worded letters to shareholders that hit out at the controversial tax, warning the ultimate cost would be borne, not just by shareholders but customers.
ANZ said that based on the current draft legislation and ANZ’s 31 March 2017 Balance Sheet, they estimate that the annual financial impact of the tax would have been approximately $345 million on a before tax basis.
Banks Become Populist
Westpac strongly objected to the Levy on the grounds that it is an inefficient tax that targets just five companies and that it places the major Banks at a competitive disadvantage relative to international peers.
Westpac also took a further swipe saying no company can simply «absorb» a new tax, so consideration is being given to how we will manage this significant impost on the bank. We plan to consult with stakeholders, including shareholders, on the Levy.
National Australia Bank went down the populist route appealing to customers by saying «NAB will continue to strongly object to this tax and will do so by engaging with you, the broader community and with the Government and Parliament.»
