$4.5Bn lost to Aussie banks in just 12 months

$4.5Bn lost to Aussie banks in just 12 months

Having a foreign owned banking sector is a major drain on our economy. Whereas other western countries gain huge wealth from their banking sector, NZ is currently losing about $4.5B per annum to Australia. The benefits of reversing this blood letting are potentialy huge. In the first instance we should look at the NZ govt migrating services from Westpac to Kiwibank if not least to provide Kiwibank with the capacity to make longterm plans for expansion. We should also apply a 'super profit tax' to highly profitable overseas businesses operating in NZ and/ or a tax on dividends paid to overseas parent companies. Even a 10% foreign dividend surcharge on the banking industry would reap $450m p/a without having any catastrophic impact on their investors.

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    • Philip Wilkinson
      commented 2016-12-07 13:25:59 +1300
      I agree something should be done. I am not sure what the tax take on these companies is BUT they should have to meet some sort of contribution to NZ. Perhaps if a company takes money out of NZ they should be paying an additional tax for use of our money? be that employ a % of local staff, contribute towards social sponsorship or a straight ot tax.
    • Philip Wilkinson
      tagged this with interesting 2016-12-07 13:25:59 +1300
    • Graeme Kiyoto-Ward
      commented 2016-12-01 07:01:51 +1300
      I agree. Leave it to the markets. I just hope they pay their fair share of tax. Personally I think that payments overseas for the use of trademarks and brands and brand names etc should attract a 30% tax (or the same as the corporate tax rate). The business based in NZ gets the benefit so it’s unlikely to stop. The risk is they hide it inside infrastructure charges. Perhaps they pay full tax and need to apply to IRD for the exemptions.
    • Robert Murray
      commented 2016-11-30 21:17:31 +1300
      Good Idea: TOP policy could be using Kiwibank for all govt and departmental (ie ACC, NZSuper – although given they’ve just bought half of it I think that should be inevitable) banking. I don’t know a super profit tax is a goer – sounds like punishing success and I think the foreign corporates actually transfer money overseas by repaying loans or licence fees from the parent company rather than repatriating huge profits. You might like my suggestion under Tax The other problem with both our suggestions is international tax compatibility: although internationally the is a search for a solution to these problems (unfortunately hugely opposed by the multinationals who would be affected).
    • Tim O’Donnell
      commented 2016-11-30 17:19:07 +1300
      As much as I agree that people should be using local owned banks where possible I think you have to leave that to the markets. Competition is good. Kiwibank needs to market their NZ heritage better. However, if you’re right & the Government aren’t solely using Kiwibank I find that ridiculous.
    • Tim O’Donnell
      tagged this with important 2016-11-30 17:19:07 +1300
    • tom greig
      published this page in Suggestions 2016-11-30 15:37:38 +1300