Canberra to tighten screws on banks, raise A$6.2b in a new tax

Sydney

AUSTRALIA'S biggest banks face a new tax, tougher penalties for misdeeds and efforts to spur competition as Prime Minister Malcolm Turnbull taps voter resentment against the lenders to finance infrastructure and health spending.

The government will raise A$6.2 billion (S$6.4 billion) from the nation's five biggest banks over the next four years by imposing a six basis points levy on liabilities over A$100 billion, Treasurer Scott Morrison said in the budget released last Tuesday in Canberra. It won't apply to superannuation funds or insurance companies.