The statements are the latest salvos in a war of words as the
nation's five biggest lenders hit back against a fresh A$370
million ($280 million) tax announced by the state of South
Australia, just one month after being slapped with a A$6.2
billion tax by the federal government.
"Ask global investors about their view of Australia, and most
will point to significantly elevated levels of sovereign risk,"
Commonwealth Bank of Australia <CBA.AX> Chief Executive Ian
Narev said in an opinion piece published late Sunday in the
Australian Financial Review newspaper.
"It is in this context that we should view the South Australian
government's unprincipled and reckless tax grab as it walked
through the gate the federal government left open."
His comments were echoed by National Australia Bank <NAB.AX>
Chief Executive Andrew Thornton, who has said that London-based
investors he had met had less confidence in Australia as a place
to invest.
Westpac Banking Corp <WBC.AX> and Australia and New Zealand
Banking Group <ANZ.AX> also said last week South Australia's
move could provoke a backlash from banks as they could decide to
curtail investment in the state.
The federal government has said its tax was a much-needed
revenue-raising measure from profitable banks to plug
Australia's yawning budget deficit. The South Australian
government argues its tax would fund job-creation initiatives.
But while the banks have been vocal in their outrage, both
levies have broad popular support amid strong anti-bank
sentiment following a series of misconduct scandals and years of
record profits for the sector.
The state of Western Australia has also said it is also open to
the idea of a tax, leading investment house UBS to warn that a
"Pandora's Box" of bank levies was "officially open" in
Australia.
The governments of the three most-populous states - New South
Wales, Victoria and Queensland - have said they had no plans for
a bank tax.
(Reporting by Joseph Hinchliffe; Editing by Jane Wardell and
Edwina Gibbs)
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