News: WBC Westpac Banking Corp comments on impact of new major bank tax on co

May 22 (Reuters) - Westpac Banking Corp (WBC)

• impact of new major bank tax on Westpac
• updated market on new major bank budget deficit repair levy ('levy') announced in 2017 federal budget
• Levy is expected to be applied from 1 July 2017, it will impact westpac's full year 2017 financial results
• "given limited detail available to us it is difficult to precisely calculate levy."
• levy is expected to be tax deductible, but will not attract franking credits (australian tax imputation credits).
• Levy would result in a new cost in our second half 2017 of approximately $65 million after tax
• dimension impact of levy for our shareholders, $260 million after tax cost is equivalent to around 8 cents per share
• "westpac has strongly objected to levy on grounds that it is an inefficient tax that targets just five companies"
• announced 0.06 per cent (or 6 basis point) levy would apply to approximately $615 billion of westpac's liabilities
• Westpac banking corp - on an annualised basis, it represents a cost of around $370 million or around $260 million after tax