‘Australian bank tax spooks global investors’

SYDNEY: Australia´s decision to slap a A$6.2 billion tax on its major banks has created uncertainty among global investors who no longer see the country as a stable investment destination, according to the chief executive of National Australia Bank.

NAB chief executive Andrew Thornton said London-based investors he had met were concerned about the federal government levy, the Australian Financial Review reported on Saturday.

"They´re saying the environment in Australia is less stable, less consistent and they have less confidence in Australia as a place to invest.

"A second Australian state on Friday said it was open to charging its own bank tax.

South Australia infuriated major banks by announcing a A$370 million tax on five big lenders on Thursday and Western Australia said on Friday the option was "attractive".

The governments of the three most-populous states - New South Wales, Victoria and Queensland - said they had no plans for a bank tax.