AUSTRALIAN BANKERS’ ASSOCIATION WELCOMES WA TAX REFORM PROPOSALS – POTENTIAL SAVINGS FOR BANK CUSTOMERS AHEAD Sydney, 14 June, 2002: The Australian Bankers’ Association welcomes the Western Australian Government’s review of state business taxes as bank customers stand to benefit from the proposed abolition of debits tax and stamp duty on cheques. David Bell, Chief Executive of the Australian Bankers’ Association (ABA), said: “While these are still proposals, if the WA Government eventually abolishes these two state taxes, the combined savings to bank customers will be $106 million dollars per annum.” “The ABA has been campaigning since 1994 for these regressive taxes to be abolished,” he said. “Unlike other states, Western Australia did not remove stamp duty on cheques when Financial Institutions Duty (FID) was introduced in the early 1980’s and the removal of this burden is overdue.” “Stamp duty on cheques and Debits Tax are only paid by those that use cheques. In the past cheques were used by large businesses and wealthier individuals. Today, cheques are used primarily by small business and Older Australians who have not moved to electronic payment methods to the same degree as the rest of the community.” “These taxes are an unfair impost on small business operators and a burden on those who can least afford it such as pensioners.” “We are pleased to see the proposal to legislate for debits tax abolition on July 1 2005. While the industry argued for earlier abolition, given the revenue constraints the certainty proposed is an acceptable compromise.” The ABA will be making a written submission to the WA Government and looks forward to the consultation period. For further information contact: Heather Wellard ABA PR  Phone: 02 8298 0411 Mobile: 0409 830 439 ENDS