Net Bank Tax Will Yield Just $3.86 Billion

So the big four have released data on the impact of the proposed bank tax, which was estimated to give more than $6 billion over 4 years, based on a 6 basis charge on selected liabilities.  They say on an annual pre-tax basis they would pay around $1.38 billion, or $965m post tax (as the tax would be an allowable expense).

The net effect after tax (around 30% deduction) would yield just $3.86 billion (plus a smaller amount from Macquaire at current levels.

Its a moot point whether this post tax position was included in the budget papers or not.

 

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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