South Australian businesses join in unprecedented campaign against State Government’s banking levy

TENS of thousands of South Australian businesses have joined an unprecedented revolt against the State Government’s controversial bank tax, warning that it will deter investment and cost jobs. VOTE NOW

• Premier challenges Opposition leader to debate bank tax live
• Government may run ad campaign against banks
• Daniel Wills: Has Labor snookered Libs over bank tax?

TENS of thousands of South Australian businesses have joined an unprecedented revolt against the State Government’s controversial bank tax, warning that it will deter investment and cost jobs.

Business SA is leading the charge, launching a campaign today that is backed by 10 major lobby groups that represent “just about every industry” across the state, extending the fight beyond a war between the major banks and government.

Big names, including Coopers Brewery, Maras property group, MyBudget financial services and airconditioning giant Seeley International, are among those joining the uprising, warning the tax will damage the state’s reputation.

The Business SA advertisement in The Advertiser in relation to the State Budget's bank tax.

They are among tens of thousands of pub and restaurant owners, farmers, winemakers, retailers, property developers and real estate agents to sign on to the campaign, which includes an advertisement in today’s Advertiser

Hotel industry boss Ian Horne has described the campaign as a “plea” to the Government to reconsider imposing a state tax on the big five banks, which employers fear will stifle business growth in SA. “Take a deep breath, stand back and listen to what people in the business community are saying,” Mr Horne said.

The tax, announced in the State Budget last week, is expected to net $370 million for the SA Government over four years — but needs Opposition support to pass Parliament. The spectre of the tax has already prompted Bank SA to shelve 150 new jobs planned for SA.

The tax is to be charged at a rate of 0.03 per cent of the profits of the ANZ, Commonwealth, NAB, Westpac and Macquarie Group.

The Government argues that its legislation will prevent the banks from passing on any extra costs directly to South Australian customers.

Coopers Brewery managing director Dr Tim Cooper.

MyBudget founder and BankSA board member Tammy May.

Business SA chief executive Nigel McBride said the state bank tax — which is modelled on a federal levy — was a “cynical cash grab” which would lead to increased fees and charges for customers.

“It sends the wrong message, that we’re not open for business, at a time when we want investment for jobs,” he said.

“This state tax is being levied without any consultation, without any forewarning, a completely arbitrary grab for profits,” he said.

“The brand damage (for South Australia) is already done. What’s next? Is it a tax on utilities (providers) ... the ports ... the insurance industry?”

Property Council SA executive director Daniel Gannon said SA “needs to send a message to a global market that it’s open to business in a competitive environment”.

“We don’t see a tax on banks as a positive signal,” he said.

The State Government argues the banks are “undertaxed” and have been abandoning jobs in SA by closing branches.

The Opposition is opposed to the tax but the Liberal party room will not take a formal position until Monday.

Opposition Leader Steven Marshall is due to deliver his Budget in reply speech to Parliament on Tuesday.

Premier Jay Weatherill has challenged Mr Marshall to a debate on the tax on radio this morning. It aired on FIVEaa at 7.05am.

Premier Jay Weatherill.

Opposition Leader Steven Marshall

“I’m interested in having a serious debate with Steven Marshall about his decision to essentially flip-flop on the banking tax or our plan to invest in infrastructure and jobs,” Mr Weatherill said.

He rejected suggestions the challenge was a stunt.

“He needs to front up to the people of South Australia to explain what his position is,” Mr Weatherill said.

Accepting the challenge, Mr Marshall issued his own for the Premier: to participate in an at least an hour-long State Budget debate on Wednesday.

“Jay Weatherill is becoming increasingly desperate,” Mr Marshall said. “South Australians deserve a full-blown leader’s debate regarding the State Budget, not just the abbreviated version the Premier proposed.”

Also on Thursday, Treasurer Tom Koutsantonis dropped out of a post-Budget function, where he was due to debate ANZ SA chairman Jane Yuile.

Mr Koutsantonis had been billed as the guest speaker at the Property Council lunch, but “I had a clash in my diary and offered to arrive late but was told it wasn’t necessary”.

Under-Treasurer David Reynolds was sent in the Treasurer’s place to defend the levy and an increased tax on foreign property investment.

Ms Yuile said the “random” nature of the tax could prevent businesses from moving to SA.

Mr Koutsantonis explained in the day: “I had a clash in my diary and offered to arrive late but was told it wasn’t necessary.

“I am always happy to attend Property Council events and will do so again in the future.”

Meanwhile, ANZ Bank chief executive Shayne Elliott on Thursday said the bank had sold “tens of millions of dollars” in SA bonds since the tax was announced because of concerns about the higher risk in the state.

“We are a bit concerned about the risk profile,” he said.