HSBC's first-half pre-tax profits were slightly down from the same period last year
AFP

Commonwealth Bank CEO Matt Comyn has proposed a shift in Australian taxation, implying that wealth should be taxed at a higher rate than income.

Comyn, during a parliamentary inquiry on Thursday, said relying on income tax was inefficient and that broader tax reform will change the country's economy for the better, The Guardian reported.

Denouncing Greens' proposed 40% tax on excessive corporate profits as "insidious populism," Comyn suggested that prioritizing popularity over genuine reform will only erode trust in institutions by perpetuating unfair narratives about corporate profits.

The Commonwealth Bank of Australia's AU$9.8 billion full-year cash profit comes despite a slowing economy. The banking sector tends to profit from interest rate hikes, passing on costs to borrowers.

Defending his company's profit, Comyn said that high profits shouldn't be stigmatized or unfairly taxed.

"Over and over, businesses in Australia are being represented in this false dichotomy that for a company to earn any sort of income or profit it is therefore inferred often or directly related ... on a daily basis as somehow being unjustly extracted from consumers," Comyn told the House of Representatives committee.

"I think this continuing often fact-free rhetoric that's being published more broadly is very damaging. It is really eroding trust in institutions, in all of our institutions. I think it's a real cause for concern."

Comyn's comments came as the Greens proposed a 40% tax on "excessive profits" of big corporations, sparking debate on corporate accountability.

Comyn directed his criticism toward the Greens' proposed "Robin Hood reforms" -- to be unveiled in the upcoming election -- and accused it of lacking a genuine intention to reform.

He also voiced concerns about the effect of current economic conditions on the savings of bank clients before the House of Representatives economics committee, 9 News reported.

"I think we're over-relying on income [taxes]. I don't think we're taxing wealth as heavily as we could," Comyn said in Canberra. "I think it's part of a broader structural issue that needs to be addressed. I understand that the changes are always very unpopular. I think the tax system at the moment is not as efficient, simple and fair as it could be."