AN OVERWHELMING majority of Australians believe there is a case for banks to be subject to a super profits tax of the kind to be applied to mining.

A poll by the Australia Institute found 81 per cent wanted a banking super profits tax to be discussed at next year's tax summit. By contrast, 67 per cent wanted mining super profits on the agenda.

Among Coalition voters, 77 per cent wanted a bank super tax discussed. The figure among Labor voters was 83 per cent and Greens 87 per cent.


The results took institute executive director Richard Denniss, who added the question about banks to the taxation survey almost as an afterthought, by surprise.

''I expected support for discussion of the mining super profits tax,'' he said. ''But while I knew there was hostility to the banks, I didn't expect overwhelming support for the idea we should tax their super profits away if we can't regulate them away.''

The institute will today present a Senate inquiry into banking with figures from the annual reports of the big four banks showing that on all three standard measures their interest expenses fell during 2010.

The Commonwealth's interest expenses fell from $21.2 billion in 2009 to $20.3 billion in 2010; its interest expense as a share of liabilities fell from 3.6 to 3.3 per cent; and its interest expense as a share of assets fell from 3.4 to 3.1 per cent.

''These are their own figures,'' said Dr Denniss. ''It is interesting that none of the big four cite their own annual reports in their submissions to the inquiry. They are telling their shareholders about the good job they are doing keeping interest expenses down while telling the public and the Parliament their interest costs are rising.

''What's good enough for the miners should be good enough for the banks.

''We will be telling the Senate that if in 12 months' time bank profits have gone up, not down, in the wake of the Treasurer's package it should consider a super profits tax

No.

Banks will simply pass it on to consumers.

It would need to be a special tax, and couldnt be an income tax.

aussiefree2ride wrote on Dec 15^th, 2010 at 9:08am:



Control yourself and let go of them. I hate people who sexually abuse their pets.

Andrei.Hicks wrote on Dec 15^th, 2010 at 9:01am:


Exactly.

Sprintcyclist wrote on Dec 15^th, 2010 at 3:18pm:


Banks equity...what is it comprised of anyway?
The funds on deposit?
What are the tangible things that banks own that are considered equity? Other than their ability to earn from deposited funds which is income rather than capitalisation.
Do they even own their buildings anymore or just lease them?

No.

Do the banks make enough profits anyway?