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BankSA examines variable mortgage rate rises after South Australian bank levy announcement

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.

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