Scrapping the State Bank Tax

The State Liberals have made the decision to scrap the State Bank Tax to ensure South Australian families and businesses will not have to bear the additional $370 million cost that Labor wants to impose on them.

The Problem

South Australians are already struggling under significant and growing cost pressures.

Electricity, ESL bills and the general costs of living and doing business in South Australia already weighs heavily on families and businesses.

Instead of using the State Budget to reduce these pressures and ease these costs, the South Australian Labor Government has decided to double-down on its strategy of increasing taxes, adding further pressure on household budgets and the cost of doing business.

The State Bank Tax is the South Australian Labor Government’s latest $370 million attempt to have ordinary South Australians pay for their financial mismanagement.

This new tax will either increase the borrowing costs of families and small businesses or reduce the returns to shareholders who have invested in businesses affected by this new tax through their superannuation and other investments.

This new tax could also raise the cost of paying for the State Government’s own debt, meaning more money would have to be spent on interest payments, instead of going into frontline services like hospitals, schools and police.

This new tax has already begun to impact the way potential investors view South Australia, with the Treasurer’s willingness to impose new taxes on any business he deems to be successful, thus discouraging new investment and new job creation.

At a time when South Australia needs greater investment and job creation, new taxes will only serve to undermine confidence and make the situation harder for families, businesses and employers.

The State Liberals' Position 

The State Liberals have made the decision to scrap the State Bank Tax to ensure South Australian families and businesses will not have to bear the additional $370 million cost that Labor wants to impose on them.

Our decision is a signal to investors that a Liberal Government will not impose sudden and discriminatory tax changes and that we will keep taxes down so that our economy grows.

Scrapping the State Bank Tax does not mean blocking the whole State Budget.

The Appropriations Bill will be approved by the Parliament, ensuring the public service can continue to perform their important work in serving South Australians.