THE NEWS WRAP: Banks attack Bowen’s proposed levy

Federal Treasurer Chris Bowen is set to announce a 0.05% to 0.1% levy on all Australian bank deposits up to $250,000, with the funds set to be used for future bank bailouts and to reduce the federal deficit.

The plan, which would see a depositor with $10,000 in savings taxed around 50 cents per month or $5 per year, has drawn condemnation from the big four banks.

“We just don’t think it’s necessary. The argument that we need to do it because others around the world are doing it does not hold water,” Australian Bankers Association chief executive Steven Munchenberg says.

AMCOR to spin off Australian assets in demerger

AMCOR has announced plans to spin off its Australian packaging assets into a new company called Australasian and Packaging Distribution operations (AAPD), which will allow the company to focus on its high-growth international plastics business.

“The decision to demerge AAPD is the next logical step in the Amcor journey,” AMCOR chief executive Ken MacKenzie says.

“Now is the right time. We have been on an eight-year journey transforming AAPD and Amcor to what they are today.”

Transurban calls for more toll roads

Transurban is calling on the federal government to drive more state investment towards toll roads, after announcing a 198.1% increase in net profits to $174.5 million.

“Our challenge over the next couple of years is to take our privileged position, find the types of solutions like F2-M3, and leverage our network position and expertise to deliver some big solutions here to both our major cities,” Transurban chief executive Scott Charlton says.

“The biggest thing the feds can do is have a pool of funds that the states can use as a carrot to get through the political environment – for instance, if there was a carrot to sell to the public that there is a pool of money for roads if we are prepared to look at user charges.”

Overnight

The Dow Jones Industrial Average is up 0.83% to 15628.02. the Aussie dollar is up to US89.32 cents.