The Abbott government is yet to make a final decision on a bank deposit tax, a policy that was announced by the previous Labor government.
Finance Minister Mathias Cormann said the government's response to the financial system inquiry, chaired by former Commonwealth Bank chief David Murray, will be released in the next few months and will include a decision on the Labor initiative.
The levy which Rudd government announced in 2013, is due to start in 2016.
The levy on deposits would establish a fund in case a bank collapses in Australia but the Murray inquiry cast doubt on whether it would be sufficient to cover the size of the problem.
"So there wasn't a lot of point doing it," Mr Murray told Sky News on Sunday.
He said while a fee was charged for an explicit guarantee during the 2008-2009 global financial crisis, unless the money was put aside from other government expenditures to deal with the problem, it would leave taxpayers vulnerable.
Instead the inquiry has recommended banks increasing their capital requirements, an option that banks say could lead to higher interest rates.
"We weren't so concerned about the banking system, we were concerned about the tax payer," Mr Murray said.
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