Bank tax could win support from former Liberal MP Duncan McFetridge — if emergency services levy is cut

FORMER Liberal MP Duncan McFetridge has handed the State Government an ultimatum on the controversial bank tax, offering to vote for it if the funds are used to cut Emergency Services Levy bills.

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FORMER Liberal MP Duncan McFetridge has handed the State Government an ultimatum on the controversial bank tax, offering to vote for it if the funds are used to cut Emergency Services Levy bills.

State Parliament is expected to start debating the budget measures legislation, which includes Labor’s $370 million major bank tax, late Thursday.

The two independent ministers, Geoff Brock and Martin Hamilton-Smith, have confirmed they will back the tax, ensuring passage to the Upper House, where it is likely to be blocked.

Treasurer Tom Koutsantonis has issued a fresh warning to the Liberals and Upper House crossbench, saying they will also be killing planned payroll and land tax cuts, extra charges for foreign property buyers, and off-the-plan stamp duty reductions by voting against the bank tax.

Those measures are contained within the same legislation as the bank tax and the Upper House does not have the power to separate out and pass or block individual measures. Mr Koutsantonis said they were faced with an “all or nothing” choice, and the consequences of it.

Treasurer Tom Koutsantonis with Premier Jay Weatherill. Picture: AAP/David Mariuz

Duncan McFetridge

“Every government in the state’s history has had its Budget measures passed,” he said.

“We expect our Budget to pass. We are not prepared to change our minds.”

Dr McFetridge has told The Advertiser he is willing to also back the bank tax in the Lower House, but only on the condition that the money is used to ease household cost of living.

The ESL was massively increased in Labor’s first State Budget after the 2014 election. The increases raises about $90 million a year, roughly equal to the revenue of the bank tax.

Dr McFetridge, now an independent, said cutting the ESL for households would offset expected increases in bank fees and charges or lower superannuation returns if the bank tax became law.

“Other than that, I won’t be backing it. But I don’t think the Labor Party is going to support that,” he said. ”

Former Labor MP Frances Bedford said she did not like the bank tax but could not be reached for interview about how she planned to vote.

Mr Hamilton-Smith said he had promised the Government confidence and supply in his deal to become a minister, and the Liberal move to block the Budget measure was “the road to ruin”.

It has long been convention in SA that the Upper House does not stop Budget measures and that governments are given financial free rein between elections.

Mr Brock said “any Government initiative that delivers employment across our state, particularly in our regions, is critically important” and the bank tax would help develop new industries.

Treasurer Tom Koutsantonis in Question Time on Wednesday attacked BankSA, saying its “major role now is to attack SA’s economy”.

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