Jay Weatherill vows not to resurrect bank tax in the future

ULTIMATELY, Premier Jay Weatherill promised that the bank tax was “dead” and his pledge not to resurrect it in future means it should be buried and cremated, too.

• Jay Weatherill kills off bank tax
• For and against: The bank tax had to go

ASKED about the seemingly never-ending stoush over the bank tax on Sunday, Premier Jay Weatherill declared: “I don’t give up a fight.”

On Wednesday, he did.

Announcing the backdown as South Australians were distracted by the result of the same-sex marriage vote, Mr Weatherill conceded there was “no prospect” of the plan to tax the five major banks gaining approval in State Parliament’s Upper House.

He and Treasurer Tom Koutsantonis had apparently still been trying to change the resolute minds of Advance SA MP John Darley and Australian Conservatives’ Robert Brokenshire and Dennis Hood late into Tuesday night — but to no avail.

Ultimately, Mr Weatherill promised on Wednesday that the tax was “dead” and his pledge not to resurrect it in future means it should be buried and cremated, too.

Premier Jay Weatherill speaking about the marriage equality result in Hindmarsh Square on Wednesday. AAP Image/David Mariuz

The tax has been mired in deadlock for months, seemingly destined for failure or perpetual stalemate, yet the Government remained adamant it was a sound policy worth fighting for — all the way to the March election, if necessary.

The tax had represented a major point of difference between Labor and the Liberals in the lead-up to polling day.

The Government’s surprise backdown on a busy news day removes that obvious policy choice for voters, but some may still hold it against Labor for trying it on in the first place.

Its argument had been that a tax on multi-billionaire bankers would spare everyday South Australians from another direct tax hit.

But the banks successfully waged a PR war that convinced enough people it would be the state at large that would pay the ultimate price, either in costs that would “have” to be passed on or in a confidence hit to a jurisdiction desperately in need of more private investment.

The fight was getting increasingly messy and hoovering up oxygen. The banks were even targeting Mr Koutsantonis’s electorate with a campaign in Greek.

The expensive ad war should end now — one positive for a Government that had been under siege and struggling for clear air on other ­topics.

Mr Koutsantonis now must redraw a State Budget with a $370 million hole over four years.

But he and Mr Weatherill have insisted they do not want to scrap measures they believe will create jobs.

They will no doubt blame the Liberals and other opposed MPs for whatever they have to jettison.

However, the counter argument many have already made is that they wouldn’t be in this position if they’d lived within their means the first time around.

There is also a huge stash of cash still sitting in state coffers from the privatisation of the Lands Titles Office, which garnered about $1.2 million more than expected.

While the backdown is hugely embarrassing, the Government may have a chance to reset the debate if it delivers a more pleasing Budget update, featuring a few pre-election sweeteners, with time to sell it ahead of the poll.