Labor pledges legal help for bank victims

Labor is promising to slug big banks $640 million over four years, with part of the money raised to lift the number of financial rights lawyers in Australia.

Opposition Leader Bill Shorten: "I say to Australians: If the ministers in the government are giving up on the government, you should too". Source: AAP

A Labor government would use a new levy on Australia's big banks to boost the number of financial rights lawyers from 40 to 240.

The extra legal support is the latest element to be revealed from the opposition's proposed Banking Fairness Fund, which would raise $160 million a year by slugging banks in Australia's top 100 listed companies.

Labor has pledged $120 million over four years out of this for 200 extra lawyers to help victims of financial services misconduct through courts and the Australian Financial Complaints Authority.

That comes after Bill Shorten announced on Monday that $320 million from the fund would be used to double the number of financial counsellors to 1000.

The opposition leader is intent on keeping the focus on banking misconduct, as the coalition shifts gear from border protection to climate and energy policy.

Prime Minister Scott Morrison has dismissed Labor's proposed bank levy, arguing it would hurt the economy.

He insists Mr Shorten's answer to every question is higher taxes.

Labor believes 200 more lawyers will allow about 180,000 people a year to access assistance, meeting three-quarters of demand and drastically lifting the figure from the 30,000 who now receive legal help each year.

"This is a once in a generation chance to shift the balance back towards consumers," financial services spokeswoman Clare O'Neil said.

"Labor will make sure you're not on your own in a fight with the banks."

Under Labor's response to the banking royal commission, lawyers would be able to pursue higher compensation payouts.

The opposition last week pledged to raise the threshold for compensation that those stung by credit issues could negotiate through AFCA to $2 million - quadruple existing individual caps and double that for small business.

The two announced measures leave the fund with $200 million still to be allocated.

Labor's commitment to extra financial counsellors comes as the coalition is conducting a review into the best way to fund the sector.

"We are going to have a proper look at it before we simply rush to a headline," cabinet minister Paul Fletcher told ABC's Radio National.

LABOR'S $640m BANKING FAIRNESS FUND

* $320m over four years to double the number of financial counsellors to 1000

* $120m to boost the number of financial rights lawyers from 40 to 240

* $200m to be announced.