Finance Minister, Nicola Willis, is reported yesterday to have said no decisions have been made in relation to whether banks in NZ are paying their fair share of tax, which she is considering ahead of Budget 2026. But with the Minister withholding all the relevant documents the public have no way of knowing if anything meaningful - like a levy on banking profits - is on the table, or if it is a smokescreen to make it seem like she’s serious about dealing with the big banks.

“The decision on whether to bring New Zealand into line with Australia and the UK and impose a banking levy on major banks is a chance for the Minister to show that she backs the wellbeing of ordinary people in New Zealand, over the profits of the big banks,” said Glenn Barclay, spokesperson for the Better Taxes campaign.

“Currently our tax system is out of step globally: we are a low tax country and are not collecting enough revenue to fund the things that matter, like schools and hospitals; and we rely too heavily on taxing working people, while the wealthy and big multinational corporations get off lightly compared to other countries. A banking levy is a chance to stand up for the little guy.” 

Both the UK and Australia impose levies or corporate tax surcharges on the profits of major banks. Such levies are intended to improve competition, ensure banks are making a fair contribution to the economy, and to mitigate the impact on public services already starved for funding if the government has to bail out “too-big-to-fail” financial institutions - like we saw in New Zealand and around the world during the 2008 Global Financial Crisis.

“At a time when ordinary people and small business owners in New Zealand are struggling with high interest rates and the cost of living, the Minister has an opportunity at this year’s budget to ensure banks - that are making enormous profits in Aotearoa New Zealand - are contributing their fair share to our economy and ultimately our communities,” said Barclay.  

“We encourage the Minister to take up this opportunity to back our communities over the big foreign-owned banks, and establish a levy or surcharge on corporate tax rates on banks’ profits over a reasonable threshold.”

“We can afford to properly fund and staff our hospitals and schools, maintain our infrastructure, and respond to embedded poverty and climate related weather events if we ensure everyone who is benefitting from our economy - including the big banks - is paying their fair share to support our communities that make the economy tick!”