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BankSA's chief executive has not ruled out increasing variable mortgage rates based on customers' postcodes, in response to the South Australian Government's new bank levy.
Treasurer Tom Koutsantonis revealed plans to impose a levy on the big banks in last week's state budget, with the measure set to raise about $370 million over four years.
BankSA put plans to create 150 new jobs in South Australia on hold following the announcement.
When questioned on ABC Radio Adelaide, BankSA chief executive Nick Reade would not rule out increasing variable rates for customers with postcodes beginning with the number five — a move which would capture its South Australian residential and business customers.
"I can't comment at this stage because it's too early," he said.
"I haven't had a chance to understand the implications [of the levy] and we haven't seen the legislation.
"I don't understand how it all works to be honest, we're trying to get more information on it, but on the surface we're going to have to look at our operations.
"What this does is it affects the future around investment and jobs."
Mr Reade did say BankSA did not have any plans to pull sponsorship from major events like the Adelaide Fringe and the Royal Adelaide Show.
"We are dedicated to South Australia ... and we're looking at new sponsorships," he said.
State Opposition Leader Steven Marshall said the Liberal Party would not block the budget, but would look at whether supporting the bank levy was in the best interests of South Australians.
"We will be looking at this budget measure [because] we're not convinced that it's good for South Australia," he said.
"I think Nick Reade is right — interstate, people think South Australia is becoming a laughing stock.
"But we won't be making a kneejerk reaction.
"We'll be looking at the detail of this.
"Our reply in the Parliament is next Tuesday."
Topics: budget, government-and-politics, states-and-territories, banking, adelaide-5000, sa
First posted