The Federal Government's controversial levy on the big banks has passed both houses of Parliament in 2017. Senator Pauline Hanson called it "policy on the run" that was not "well thought out". She claimed: "Being a bank levy, it is a tax deduction to the banks ' if it was a tax it would not be a tax deduction." Is the levy tax deductible? Does it matter whether it is a bank levy or a bank tax? And is this evidence of policy on the run? RMIT ABC Fact Check found Senator Hanson's statement is flawed. The major bank levy is tax deductible: the banks will be able to claim the amount of bank levy paid as a business expense, which will reduce the amount of corporate tax they have to pay on their profits. But this is a normal part of the taxation system. It has nothing to do with whether it is a "bank levy" or a "bank tax". And the tax deductibility of the levy does not in itself support the view that the levy is policy on the run or poorly thought out.
Verdict: Flawed