The federal government's bank levy has set a precedent which cash-strapped states and territories will consider as a revenue-raising option.
That's the view of shadow treasurer Chris Bowen after South Australia proposed a $370 million bank levy in its budget last week, coming on the tail of the commonwealth's $6.2 billion levy on five major banks.
Treasurer Scott Morrison has labelled the "cut-and-paste" measure "pretty lazy".
The major banks had been given an implicit taxpayer guarantee from the federal government, not from the states, he said.
But Mr Bowen argues the treasurer has set a precedent.
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"I think it's a bit disingenuous for them to say a federal bank tax is good but a state bank tax is bad," he told AAP on Monday.
"I'd be surprised if state treasuries didn't think about those options."
But the Australian Bankers Association says there is a strong consensus the South Australian move will be a negative for investment, growth and jobs in the state.
"The state needs incentives to attract business, not new taxes that will discourage businesses from investing in new projects and employing people," ABA executive director for industry policy Tony Pearson said in a statement.
"There is no policy rationale for this proposed tax for South Australia. All Australian banks - large and small - oppose it."
Mr Pearson said other states would be misguided to follow South Australia's lead.
However, the GST-deprived West Australian state government has indicated it might pursue a levy, but the NSW state government has ruled it out.
South Australia's levy decision came just days after the federal parliament passed Mr Morrison's version, marking a difficult week for the banking industry.
The credit rating of 12 banks was downgraded and there were further calls for a royal commission into the sector.
