Surprise taxes scaring away foreign investors, warn two big Aussie banks

Sydney

SURPRISE taxes levied on Australia's banking sector are frightening off potential foreign investors by creating a less stable business environment, two of the country's major banks warned.

The statements are the latest salvos in a war of words as the nation's five biggest lenders hit back against a fresh A$370 million (S$389 million) tax announced by the state of South Australia, just one month after being slapped with a A$6.2 billion tax by the federal government.