JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

South Australia's new bank levy exposes the desperation of a government that is unable to get its own budget and spending under control. 

The confused rationales for the tax are risible, and the knee-jerk approach to whacking job-creating businesses with ever higher taxes demonstrates how bereft we are becoming of good leadership.

The great shame is that, by imposing another 'one-off' burden on employers, this tax will make us an even less attractive place to invest and hire people.

South Australia faces 6.9 per cent unemployment the highest in the country and persistently weak economic growth that has lagged the national average for seven years now.

If global businesses are reluctant to invest in Australia, what are the odds they'll invest in South Australia?

It beggars belief that instead of supporting policies that will increase the investment needed to create jobs, such as a globally competitive company tax rate, the South Australian government is doing the opposite.

It is galling that a state government that is not prepared to make tough decisions to strengthen its own economy should impose a tax that will harm the investment environment across the entire country.

The Turnbull government must bear responsibility for letting the genie out of the bottle.

All of these 'one-off' government decisions, when taken together, have a chilling effect on business investment which is at its lowest level as a share of GDP since June 1994.

Australia is becoming a laughing stock of global investment circles as erratic governments state, territory and federal carelessly undermine and chop and change the rules of doing business.

Never miss a story: Sign up to Business News Australia's free news updates

Follow us on Twitter, Facebook, LinkedIn and Instagram

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Cettire loses $411m in value as shares plummet 48pc

Cettire loses $411m in value as shares plummet 48pc

All of the extraordinary share price gains made by Melbourne-based ...

Fines of $10 million will force supermarkets to rethink exploiting suppliers, but more could be done

Fines of $10 million will force supermarkets to rethink exploiting suppliers, but more could be done

Suppliers of food and other products have been complaining for year...

From Just Jeans to Dotti, Myer proposes merger with Premier's apparel brands

From Just Jeans to Dotti, Myer proposes merger with Premier's apparel brands

Myer's (ASX: MYR) new executive chair Olivia Wirth has wasted l...

Dion Lee sale "likely" as administrators preserve business, jobs

Dion Lee sale "likely" as administrators preserve business, jobs

The administrators of Sydney-based global fashion brand Dion Lee ha...