SA Libs want early election over bank tax

The South Australian opposition has urged the state government to go to an early election over its controversial bank tax.

South Australian Premier Jay Weatherill

SA Premier Jay Weatherill says his government has no plans to leave Commonwealth Bank. (AAP)

South Australian Opposition Leader Steven Marshall has challenged the state government to call an early election over its controversial bank tax.

Debating the issue in state parliament on Wednesday, Mr Marshall urged the government to let the people decide on the merits of the levy on the country's five biggest banks.

"Go to the people of South Australia. Do not inflict this on them," Mr Marshall said.

The tax is included in the state's government budget measures bill which is currently before parliament.

The opposition has vowed to block the bill in the upper house with the support of key crossbenchers.

But that will only give the government a trigger for an early election if it declares the legislation a bill of special significance.

Premier Jay Weatherill told reporters he expected the impasse over the bank tax to be resolved before the next scheduled state election in March.

"There's a dialogue in parliament, there are processes, there are discussions that occur," he said.

"What people say publicly at the beginning of a debate and where they ultimately end up can be two different things.

"I think it will be sorted out well before the election."

The state government has also indicated it has no plans to take its business elsewhere despite the Commonwealth Bank's opposition to the tax.

The possibility of dumping the Commonwealth in favour of one of its smaller rivals has been raised by Trade Minister Martin Hamilton-Smith.

Mr Weatherill says the idea isn't government policy, though he's noted the Commonwealth Bank has a "rather large contract with the government which comes up for grabs later this year".

"There's no intention by the government to review that at this stage," the premier said.

Labor hopes to raise $370 million over four years from the ANZ, Westpac, Commonwealth, NAB and Macquarie banks.

A similar federal government bank levy aims to generate $6.2 billion from the same institutions to help repair the budget.

The banks have strongly opposed the move, raising the possibility of passing the costs onto local consumers and warning it will hinder investment in SA.


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Source: AAP



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