Bligh repeats call for levy sunset clause

The Australian Bankers' Association says a sunset clause must be added to the federal government's bank levy legislation to limit lenders' liabilities.

The Australian Bankers' Association has welcomed changes to the bank levy legislation. (AAP)

Australian Bankers' Association chief Anna Bligh has welcomed changes to the bank levy legislation but says big lenders face an unlimited charge unless a sunset clause is added.

The legislation enshrines the levy rate of 0.015 per cent per quarter for banks with more than $100 billion in certain liabilities, meaning parliamentary approval would be required before it could be changed, but Ms Bligh wants the levy to be limited to a set term.

"If the government doesn't include a sunset clause, this is not a $6 billion tax on banks, this is $30 billion, $50 billion, $80 billion - it goes in perpetuity and you add up that cost over time," Ms Bligh said.