SA Greens propose stamp duty crackdown on banks that close local branches

Banks that scrap physical branches could face hefty penalties under a bold bid to save the state’s regional services.

Banks that close their branches could be stung by hefty new stamp duty fees under a plan to protect cash services in the state’s vulnerable regions.

The Greens will push for an amendment to the state government’s Budget Measures Bill that would require banks to pay 20 per cent of the land value in stamp duty on any sale of a bank branch building, unless the sale is made to another financial institution.

Greens co-leader Robert Simms said the move was a bid to stem a growing tide of recent bank closures, particularly in regional areas.

Mr Simms has written to Premier Peter Malinauskas and opposition leader David Speirs urging their support for the amendment, pointing in particular to the closures of the Golden Grove Commonwealth Bank branch last month and Coober Pedy Westpac branch last year.

Greens MLC Robert Simms will push for stamp duty penalties for banks that close their branches. Picture: NCA NewsWire/Morgan Sette

Since the Coober Pedy closure, the town’s 1500 residents have been forced to travel up 500km to Port Augusta or Alice Springs to access a bank branch.

“It’s appalling that despite making record profits off the backs of families struggling with interest rate rises, banks persist in closing their branches and leaving communities high and dry,” Mr Simms said.

According to the Australian Prudential Authority, 69 regional branches have closed in SA since 2012. In the first half of 2024, Westpac, NAB, CBA and ANZ reported a combined profit after tax of $15 billion.

“Given their enormous profits, banks have a responsibility to ensure communities are serviced appropriately,” Mr Simms said.

“It’s only right that those who shirk this responsibility face a financial penalty.”

The Greens will propose the amendment when parliament returns next month.

In May, a Senate inquiry into the impact of branch closures on consumers and businesses recommended the federal government investigate the prospect of a publicly-owned bank, to ensure remote Australians retained access to financial services.

It also recommended making the existing Banking Code of Conduct mandatory, which would require banks to undertake meaningful consultation with communities before shuttering a branch.