Cory Bernardi ‘astounded’ by delayed political response to SA’s controversial bank tax

RENEGADE Senator Cory Bernardi says his former party must side with popular opinion and block the State Government’s $370 million major bank levy.

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RENEGADE senator Cory Bernardi says his former party must side with popular opinion and block the State Government’s $370 million bank levy.

The Australian Conservatives’ federal leader said the Sunday Mail/Galaxypoll – which shows most voters do not support Treasurer Tom Koutsantonis’s new revenue raiser – urged Liberal leader Steven Marshall to oppose the “debilitating” measure.

The poll found 55 per cent of respondents opposed the tax on the four major banks and Macquarie Group, almost double the 28 per cent who supported it.

The remaining 17 per cent of respondents were undecided.

Australian Conservatives Senator Cory Bernardi

State Opposition Leader Steven Marshall

Mr Marshall would not be drawn on the surprise poll result ahead of tomorrow’s Liberal party-room meeting, where MPs will determine whether they intend to block the tax or promise to roll it back if they win next year’s election.

Senator Bernardi said the Liberals’ consultative process had taken too long and Mr Marshall should have rejected it at “first glance”. “I just find it astounding that an Opposition is prepared to walk away and allow a tax that is so debilitating,” he said.

Mr Koutsantonis said he wasn’t surprised by the poll result “given the way the question is formulated”. “The poll question suggested the levy could be passed on to customers through fees and charges, despite the fact our legislation specifically makes it an offence under law to pass it on to bank customers,” he said.

The banking sector and business leaders say the tax would make SA a “laughing stock”. And MPs have questioned whether the legislation is robust enough to protect consumers from the tax being passed on under another guise.

Bank industry sources estimate extra interest charges of about 0.08 to 0.1 per cent could be added to mortgage payments if the tax is passed on to consumers in full.

Business SA chief executive Nigel McBride said the responsibility rested with Premier Jay Weatherill to abandon his “disastrous” policy. “I don’t think it’s fair for Steven Marshall to clear up the mess Jay Weatherill has started,” he said.