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BRIEF-Westpac Banking Corp comments on impact of new major bank tax on co
May 21, 2017 / 11:50 PM / 7 months ago

BRIEF-Westpac Banking Corp comments on impact of new major bank tax on co

May 22 (Reuters) - Westpac Banking Corp

* impact of new major bank tax on Westpac

* updated market on new major bank budget deficit repair levy (‘levy’) announced in 2017 federal budget

* Levy is expected to be applied from 1 July 2017, it will impact westpac’s full year 2017 financial results

* “given limited detail available to us it is difficult to precisely calculate levy.”

* levy is expected to be tax deductible, but will not attract franking credits (australian tax imputation credits).

* Levy would result in a new cost in our second half 2017 of approximately $65 million after tax

* dimension impact of levy for our shareholders, $260 million after tax cost is equivalent to around 8 cents per share

* “westpac has strongly objected to levy on grounds that it is an inefficient tax that targets just five companies”

* announced 0.06 per cent (or 6 basis point) levy would apply to approximately $615 billion of westpac’s liabilities

* Westpac banking corp - on an annualised basis, it represents a cost of around $370 million or around $260 million after tax Source text for Eikon: Further company coverage:

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