The Australian Bankers' Association has taken another swipe at South Australia's new bank levy, saying a report shows they are among the highest taxpayers in the country.
The ABA's executive director of industry policy Tony Pearson says its own report shows banks accounted for more than half the income tax paid by Australia's top 200 listed companies in 2016.
"In terms of tax paid, it is banks first, daylight second," Mr Pearson said.
"Banks make the highest contribution by far to help governments at all levels fund essential public services such as hospitals, schools and roads, and income support for those in need."
Mr Pearson said the banking industry paid more than $14 billion in tax in 2016 along with $25 billion in wages, $26 billion in dividends and $66 billion in interest on bank deposits and bonds.
Since announcing the bank tax in last week's budget, SA Treasurer Tom Koutsantonis has maintained the big banks are undertaxed and the impost is designed to have them pay their fair share.
He continued to defend the measure on Tuesday, saying the government needed the funds to provide assistance to small business and to fund other budget measures.
"The choice we've made is to tax the five Australian big banks rather than mums and dads," he said.
The levy is to come into force on July 1 and is expected to raise $370 million over four years.
It will be imposed on the same institutions to be hit by a similar federal government tax: the Macquarie Group, Commonwealth Bank, National Australia Bank and ANZ.
