Galaxy poll finds SA small and medium businesses overwhelmingly against new bank tax

SOUTH Australian small ­businesses overwhelmingly oppose the new state bank tax and many fear it will deliver a further blow to fragile consumer confidence, a new poll shows.

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SOUTH Australian small ­businesses overwhelmingly oppose the new state bank tax and many fear it will deliver a further blow to fragile consumer confidence, a new poll shows.

The Galaxy survey, commissioned by the Australian Bankers Association, has found 65 per cent of small and medium-sized businesses in the state are against the surprise new $370 million tax.

The study, carried out between July 19 and 21, surveyed 400 businesses in SA that employ 19 people or fewer.

Twenty-two per cent of respondents said they supported the tax.

It follows a range of polls taken on the views of the general community and marginal seat voters, which found weak popular backing for the tax amid fears that households will carry the cost.

ABA chief executive Anna Bligh said “the results are clear” and SA’s small businesses feared another tax would simply “make doing business in their state much harder than it already is”.

“SA needs economic policies that are going to stimulate growth and support small ­businesses, not bad policies that will leave SA lagging behind other states,” Ms Bligh said.

Treasurer Tom Koutsantonis has insisted the bank tax will benefit small businesses, as the Government takes money from a highly profitable sector and spends it on new jobs programs.

South Australian Treasurer Tom Koutsantonis.

“We are introducing this levy on the five big banks so that we can support thousands of SA small businesses and help them create jobs through the $200 million future jobs fund,” he said.

“We want the big banks to pay their fair share of tax, just like every other business.

“The five big banks know that, if they follow through on threats to charge South Australians higher interest rates, they’ll lose their customers to smaller banks and credit unions.”

The tax is being debated in the Lower House of State Parlia­ment, where Labor has the numbers to force it through.

However, it is likely to be defeated in the Upper House later this year as the Liberals combine with the Australian Conservatives and Nick Xenophon Team to oppose it.

The Galaxy poll also finds 47 per cent of SA small and medium-sized businesses are strongly opposed to the tax, and 81 per cent think it will make the state less competitive than other states and territories.

A majority of small and medium-sized businesses think it will hurt consumer confidence and jobs.

Goodwood Bakehouse owner Louis Langanis employs eight staff and started the business in 1995. He fears the state bank tax will add to costs and hit consumer confidence in SA Picture: Dylan Coker

They are also concerned that other new “ad hoc” taxes could now be in the pipeline.

Goodwood Bakery owner Louis Langanis said rising costs across the board in SA had made it increasingly difficult to run a business, and forced him to cut back on staff numbers.

“We are hamstrung because we can’t put up our prices too much, so any extra costs to our business will have to come out of our pocket,” he said.

“What worries me about the bank tax is someone is going to have to pay for it. I am going to pay for it, my customers will have to pay for it and shareholders like retirees who have worked hard all their lives will have to pay for it.”

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