The Major Bank Levy Bill 2017 was introduced on May 30, 2017 to the House of Representatives. The bill proposes to implement the 2017-2018 Federal Budget announcement to impose a bank levy on Authorised Deposit-taking Institutions (ADIs) with licensed entity liabilities of at least 100 billion Australian Dollars (AUD), effectively limiting the levy to the four major banks and Macquarie.

PwC observation:

The rationale for the introduction of the Bank Levy in Australia appears to be about the major banks making a fair and substantial contribution toward repairing the federal budget. While bank levies have been effective in raising revenues in other jurisdictions such as the UK, caution should be taken as taxing one segment or sector of the economy risks creating distortions and unintended consequences.