The banking lobby has slammed a surprise bank levy announced by the South Australian government, labelling it an "outrageous cash grab" and demanding other states and territories promise they will not copy the move.
South Australian Treasurer Tom Koutsantonis announced a levy on major banks, to raise $370 million over four years, as part of his state budget on Thursday.
The levy will apply to the same banks covered by the federal government banking levy announced in this year's federal budget and will apply from July 1 this year.
The Australian Bankers' Association called the move an "outrageous cash grab", with CEO Anna Bligh labelling it "a desperate political move".
"It is not the job of banks to prop up government budget shortfalls," Ms Bligh said in a statement.
Ms Bligh said the state tax would affect business in South Australia, which currently has the nation's highest unemployment rate.
Ms Bligh said banks were now subject to "triple dipping" on taxation, with corporate tax, the federal banks levy and now the SA tax.
"The impacted banks call on every Australian Premier and First Minister to rule out a similar tax," she said.
The SA levy will apply at a rate of 0.015 per cent to the state's share of bank liabilities, as identified by the federal levy.
