Aussie banks shouldn’t get tax cuts

Finsec, the finance workers’ union is calling on the government not to give tax cuts to the Australian owned banks as part of its review of the company tax rate.

“A tax cut to the Australian owned banks will not result in a fairer distribution of the tax burden – instead it will remove the burden from the very companies most able to meet it,” said Finsec’s Campaigns Director, Andrew Campbell.

“The review aims to promote productivity. There is little evidence to suggest that these Australian banks need to improve their productivity or their competitiveness. In the last six months the banks made a combined total of $1.445 billion. Why should even more money be sent off shore to line shareholders’ pockets, rather than spent on New Zealanders’ health and education,” said Campbell.

“We see no reason for the wealthiest corporates to be getting tax cuts while at the same time our hospitals and schools need additional funding,” said Campbell.

“Tax incentives provided to these Australian companies could also be at the expense of investment in their New Zealand workers, their families and fellow citizens”.

“The banks benefit enormously from the New Zealand tax system. The least the banks can do is make a fair contribution to the national infrastructure that they benefit from,” said Campbell.

Finsec’s full submission is available at www.finsec.org.nz/httpdocs/submissions.aspx

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