Commonwealth Bank of Australia
(ASX:CBA) is estimating the Federal Government’s new bank levy will cost the group about $315 million per annum before tax or $220 million after tax per year.
The estimates are based on the bank’s liability base, excluding about $240 billion of deposits covered by the Financial Claim Scheme, as at 31 March 2017.
CBA says the new levy undermines its ability to return about 75% of its profits as dividends, to shareholders, and reinvest the remainder for future growth.
Because of that, the bank says it is seriously concerned the new levy was poorly designed as it affects shareholders and customers.
Shares in Commonwealth Bank of Australia
(ASX:CBA) last traded 1.30% higher on Monday to $81.27.
