Labor leader Bill Shorten says the government has to stop running a "protection racket" for the big banks after the prime minister shot down a proposal to exempt the major four lenders from company tax cuts.
"On one hand Mr Turnbull doesn't want to have a royal commission into banks and on the other hand he wants to give them billions of dollars in tax giveaways," Mr Shorten said in Darwin on Saturday.
Mr Turnbull's policy to "look after the very rich" won't stimulate economic growth, he said.
"It's been estimated by Goldman Sachs, Mr Turnbull's old investment bank, that something like 60 per cent or $30 billion of this corporate tax cut will go straight overseas."
Some Liberal MPs are pushing for the exemption, especially with former Labor Queensland premier Anna Bligh announced as the sector's chief lobbyist.
But Mr Shorten said it doesn't matter to him who heads the Australian Bankers Association.
"Nothing less than a royal commission will satisfy me ... Australians are sick and tired of financial scandals," he said.
Ms Bligh has rejected her party's calls for a banking inquiry, saying the federal government's already responded to the public's demand for a more trustworthy financial system.
Liberal backbencher Luke Howarth says Ms Bligh's appointment adds weight to the argument to leave the big four out of the coalition's policy to reduce tax rates over a decade.
"The point is that our Enterprise Tax Plan will not go through the Senate as is ... and the big four banks already make plenty of money," he told The Australian.
"There was a case to have them excluded prior to this ... it is more so now ... it is a blatant political appointment."
Asked whether they could be exempt, Mr Turnbull on Saturday said the rate really had to apply across all corporations.
"Distinguishing between one sector and another is not a practical measure," he told reporters in Queenstown before flying out of New Zealand.
"I'm not aware of that ever being done in any other jurisdiction."
He said he understood concerns about banking practices but misconduct is being cracked down on.
"We're taking real action to ensure the banks treat their customers better."
Labor's planned royal commission would not result in any action after years of inquiry, he said.
The Australia Institute said its research showed the big four would reap $7.4 billion from the company tax cuts over the decade.
"The big banks and insurers made nine per cent of company income last year but accounted for just one per cent of private investment," executive director Ben Oquist said.
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