Bank levy to have minor impact on average Australians

by Matt Grudnoff

The Australia Institute has tested two claims made in response to the bank levy announced in the Federal Budget: that the impact of the levy will be passed onto customers, and that it will be borne by shareholders, affecting Australian superannuation savings.

—For paper see PDF below—

In either scenario, the research finds that the levy on the world’s most profitable banks will have minimal impact on ordinary Australians.

“The levy will have only a tiny impact on the average Australian and most of that impact can be avoided by shopping around for a better deal on banking services,” report author and Senior Economist at The Australia Institute, Matt Grudnoff said.

“Our analysis shows if a bank levy was all taken from shareholders it would reduce super returns by only $7 per year or 60 cents a month.”

Full report