Additional Tax on Banks and Life Insurers
Budget 2022 introduced an increase of the corporate income tax rate of 1.5 percentage points on the taxable income of banking and life insurance groups above $100 million. This will increase the overall federal corporate income tax rate above this threshold from 15.0 per cent to 16.5 per cent for all taxation years that end after Budget Day 2022. For a taxation year that includes Budget Day, the additional tax is prorated based on the number of days in the taxation year after Budget Day.
The PBO estimates the total revenue from the Additional Tax on Banks and Life Insurers to be $2.3 billion.