23 May 2017

Question Time today demonstrated that the Government has a hole in its bank levy numbers.

The big four banks have reported to the stock exchange an accumulated $965 million after tax. They are obliged under the Corporations Act to be accurate.

Yesterday the Prime Minister and Government focused on the $1.6 billion in 2017-18 [fiscal balance] the number it has headlined since Budget night.

Today the Treasurer has moved the goal posts by deciding to focus on the cash receipts figure of $1.2 billion in 2017-18.

It doesnt matter which field Scott Morrison wants to play on, theres a shortfall in revenue.

The Prime Minister conceded as much in his last answer on the issue in Question Time where he said: It may well be if the banks have got a different view about it, different assumptions, they are entitled to express that.

Deutsche Bank and Morgan Stanley have both estimated the bank levy tax take for 2017-18 at $1 billion.

Depending on where the smaller Macquarie Bank lands, the revenue gap could be more than $100 million for 2017-18 alone.

This is occurring just two weeks after the Budget and the announcement of the Governments bank tax rate and liability base.

Scott Morrison needs to come clean on (1) what the revenue shortfall will be over the forward estimates and (2) ruling out any further changes to the bank tax rate or liability base to attempt to make up the revenue shortfall.

Last night the Treasurers office issued a statement that included the comment that: The Government believes the banks figures support Treasury revenue forecasts of $6.2 billion over the Budget forward estimates.

Is the Treasurer really saying that the best he can offer only two weeks after the release of his Budget numbers is that he only offers belief or the vibe of the thing?

These guys are just making it up as they go.