Australia's banks contributed a record $16 billion in taxes and other levies in the 2025 financial year, enough to fund over 370 million bulk-billed GP appointments, according to a new report released today by the Australian Banking Association.
The Contribution Gap: Tax and regulatory imbalances in the digital age, highlights the critical role banks play in funding Australia's public services compared to many foreign technology companies.
This contribution of more than $16 billion in taxes and levies to Australian federal, state and territory governments could fund critical services such as:
- 880 000 secondary students fully funded in public schools for a year
- over 180 000 annual public hospital nurse salaries
- around 85 per cent of the entire Pharmaceutical Benefits Scheme.
ABA CEO Simon Birmingham said Australian banks were proud of the significant contribution they make to the economy and broader community.
"Australian banks rightly and proudly pay their fair share of tax each and every year," Mr Birmingham said.
"Banks pay more tax than any industry other than mining, with the cumulative impact of these taxes paid imposing an effective tax rate of 40 per cent last year.
"This $16 billion in tax helps fund critical essential public services, supporting a healthier and smarter Australia, in addition to the employment of nearly 180 000 Australians.
"Beyond this tax contribution, banks last year invested an additional $2.5 billion in tackling financial crime as well as over $700 million into local community projects and disaster relief.
"It's a myth to think bank earnings don't benefit everyday Aussies. The majority of bank earnings are returned directly back into the Australian economy, with over 80 per cent of bank income being given back as interest, wages and dividends."
The report also highlights how banks have paved the way for modern, secure banking by spending billions on the nation's core digital infrastructure including $2 billion to build the New Payments Platform, $1.5 billion to develop the Consumer Data Right and $100 million to roll out Confirmation of payee, protecting customers from scams.
Mr Birmingham said the report also highlighted that while Australia's banks were pulling their weight, many multinational technology companies such as Apple were not currently subject to the same regulatory scrutiny or paying the same amount of tax here in Australia.
"It's Australian banks that have built our payments system and do the heavy lifting when it comes to fighting financial crime," Mr Birmingham said.
"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.
"All we are calling for is a levelling of the playing field. These foreign multinationals need to be captured under the same regulatory umbrella as domestic banks, as well as more scrutiny applied to their local tax contributions."
