SA Government’s bank tax faces defeat as Treasurer Tom Koutsantonis turns up pressure on Upper House MPs

TREASURER Tom Koutsantonis is turning up the pressure on Upper House MPs to support his $370 million bank tax — but opponents insist they’re standing firm.

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THE State Government’s contentious bank tax is destined for defeat this week, despite Treasurer Tom Koutsantonis’ last ditch effort to revive it.

Mr Koutsantonis has tried to turn up the heat on Upper House MPs ahead of a likely showdown over the $360 million State Budget centrepiece.

In a letter to Upper House MPs, obtained by the Sunday Mail, Mr Koutsantonis warned they would be “denying” benefits to thousands of South Australians if they break with convention and defeat the State Government’s Budget Measures Bill.

But the Opposition, Australian Conservatives’ Dennis Hood and Robert Brokenshire, and Independent John Darley say Mr Koutsantonis is “bashing his head against a brick wall” and insist they will resist all pressure to pass the Bill.

Those 11 votes would be enough to sink the bank tax with Upper House MPs insisting Mr Koutsantonis’ Budget measures were dead in the water unless he scrapped the levy, which is estimated to raise about $100 million a year for the state’s coffers.

Mr Koutsantonis ruled out splitting the Bill as he did in 2014, when the same 11 MPs refused to support the State Government's equally contentious carpark tax.

“The Government is absolutely committed to passing the bill in full and not removing any of the measures,” he said.

In the letter, Mr Koutsantonis said blocking the Bill would have “severe long-term consequences for stable governance in this state”.

He said the tax was marginal compared to the big banks’ “super profits” and insisted the legislation prohibited them from passing it on to South Australian customers.

“The levy is a small impost on five big businesses that will allow the Government to support thousands of South Australian small businesses, workers and home buyers,” Mr Koutsantonis said.

But Mr Darley said the Treasurer was well aware he would not support the bank tax under any circumstances.

“The tax is not going to be good for South Australia and I don’t believe in double taxation,” Mr Darley said.

“Who would be next, Coopers? They have a crack at anyone who makes money.”

Mr Brokenshire said the Bill was “bad for families, farmers and small business” and even a State Government promise to spend the proceeds on restoring Emergency Service Levy remissions would not be enough to redeem it.

Opposition treasury spokesman Rob Lucas said Mr Koutsantonis was “bashing his head against a brick wall” by continuing to try to push the Bill through.