Business heavyweights have come out swinging against a "desperate" new bank tax in the South Australian state budget, blaming Malcolm Turnbull for "letting the genie out of the bottle".
South Australian Treasurer Tom Koutsantonis on Thursday announced the levy on major banks to raise $370 million over four years.
The state impost will apply to the same banks covered by the Turnbull government banking levy announced in this year's federal budget.
"All of these 'one-off' government decisions, when taken together, have a chilling effect on business investment which is at its lowest level as a share of GDP since June 1994," Business Council chief executive Jennifer Westacott said.
"Australia is becoming a laughing stock of global investment circles as erratic governments - state, territory and federal - carelessly undermine and chop and change the rules of doing business."
The Australian Bankers' Association called the move an "outrageous cash grab", with CEO Anna Bligh labelling it "a desperate political move".
"Tax policy in Australia is now becoming a joke at the whim of political opportunism," Ms Bligh said.
"The impacted banks call on every Australian premier and first minister to rule out a similar tax."
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 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.
