Do Australian banks pay tax on their profits?

Question

Do Australian banks pay tax on their profits?

Answer 1

o course! aust banks are a public listed companies!

Answer 2

Yes, all companies pay taxes on their profits to the government. In Australia, most companies pay 30% of their profits to tax. But most companies (including banks) will diminish their profits (so that pay less tax) by minus the profits with expenses related to the company (eg employees salaries, utilities bills, advertising fees). This is not tax evasion.

Also, bank customers who earn interests in their accounts will also need to pay tax, at their individual taxable income bracket. So take note if the bank is offering 8% interest for you, as that is BEFORE tax.