Tony Abbott empathises with the big banks over the federal government's proposed bank levy, insisting he can understand why they are fighting back.
The five big banks that will be hit by the $6.2 billion levy, announced in last week's budget, say it will need to be passed on to customers, shareholders or both.
Mr Abbott told 2GB radio on Wednesday that banks were always an easy target despite being big taxpayers.
"No one should want to increase taxes, even on banks," he said.
"I can certainly understand the banks fighting back."
Mr Abbott said he also understood the government's need to raise money and to prevent its budget unravelling.
He said he supported the budget the government had brought down.
It was the budget Australia "had to have" because of the configuration of the Senate.
"We have to reform the Senate," he said.
"We are part of the world's weak government club because the government of the day, if it's a centre-right government, cannot get its first-choice legislation through the parliament."
