A significant fiscal divide has emerged between domestic lenders and global technology giants, according to a pre‑budget report released today by the Australian Banking Association (ABA).
The report, titled The Contribution Gap, reveals that Australia’s banking sector paid more than $16 billion in taxes and levies during the 2025 financial year, implying an effective tax rate of around 40 per cent.
Beyond direct taxation, the industry allocated $2.5 billion to combat financial crime and, according to the ABA, has spent billions building core digital infrastructure including the New Payments Platform, the Consumer Data Right and the Confirmation of Payee system.
The ABA is now lobbying the federal government to address what it describes as a “regulatory imbalance” that allows foreign platforms to bypass the stringent oversight and fiscal duties imposed on Australian banks.
The industry body argues that this discrepancy threatens the sustainability of public services, noting that the banks’ current tax bill could fund 880,000 secondary public school students or around 85 per cent of the Pharmaceutical Benefits Scheme.
“Australian banks rightly and proudly pay their fair share of tax each and every year,” said ABA Chief Executive Simon Birmingham.
He emphasised that while local institutions fund and operate the nation’s core payment systems, foreign competitors are benefiting from the Australian economy without making comparable contributions.
“Unfortunately, there is a current regulatory imbalance that is seeing global technology platforms and multinational payments firms deliver bank‑like services here in Australia, without bearing proportionate regulatory and fiscal responsibilities,” said Birmingham.
The banking association is now calling for a levelling of the playing field in the upcoming federal budget.