It\u2019s expected to generate about $70 million a year, with the Government saying the revenue will be less than 1% of the big four banks\u2019 total profits.<\/p>\n
This was included in forecasts in Budget 2026 but the fine print says the amount to be generated is \u201csubject to the outcome of consultation\u201d.<\/p>\n
The Reserve Bank said the announcement was a \u201cdecision in principle to the levy\u2019s introduction\u201d. The consultation is on the design of the levy and how to calculate the amount paid by the individual entities.<\/p>\n
Given there\u2019s still time before it\u2019s introduced, the consultations and further decisions need to be made, the Herald asked Willis on Tuesday whether there was a possibility she wouldn\u2019t go through with implementing the levy.<\/p>\n
\u201cNo, it\u2019s simply a requirement of the Reserve Bank Act that in order to do the levy they need to consult,\u201d Willis said.<\/p>\n
She said the \u201cGovernment already agreed to it\u201d. <\/p>\n
National’s Nicola Willis says the no new taxes promise doesn’t apply to those already announced. Photo \/ Anna Heath <\/p>\n
After announcing the levy in May, Willis said National may campaign on further tax reform for banks<\/a> if she couldn\u2019t get coalition agreement.<\/p>\n On Sunday, she said there were no other tax measures \u201cthat I can see won\u2019t result in additional costs for Kiwis\u201d. <\/p>\n \u201cSo what\u2019s changed is my concern that there isn\u2019t a mechanism that won\u2019t end up being borne by everyday people on their mortgage or their bank fees and I don\u2019t want that. <\/p>\n \u201cI\u2019m really concerned that Kiwis not face the cost of additional taxes and while we looked at alternative mechanisms, none of them stacked up against the simple rule, no more costs for Kiwis.\u201d <\/p>\n