South Australian Treasurer Tom Koutsantonis has taken aim at the big banks, slugging them with a levy to raise $370 million over the next four years.
Taking a leaf out of the federal government's book, Mr Koutsantonis said he agreed that the major banks were making super profits and were an undertaxed part of the economy.
"Even with our tax and even with the Commonwealth tax and even if every other state followed us, they'd still be under-taxed," the treasurer said as he delivered the South Australian budget on Thursday.
The SA government's levy will apply to the same institutions to be hit by the federal government's tax and will apply from July 1 this year.
The government will also introduce legislation to prevent the banks passing the impost onto their customers, and offered them no notice of the budget slug.
"These are organisations that are making super profits and are not paying their fair share of tax," Mr Koutsantonis said.
"These taxes apply all around the world and Australian banks should not be immune from this.
"They should be contributing back into the economy."
Notwithstanding the government's planned legislation, the treasurer said he would be surprised if the banks tried to pass on the levy.
He said with many other financial institutions looking to increase their market share, the big banks would risk losing business if they did.
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