South Australia's controversial new bank tax could be a job creator and local voters are split in their support for the levy, a new report has found.
The Australia Institute has quizzed more than 1500 voters in SA asking simply if they support or oppose the measure.
It says 42 per cent are opposed and 41 per cent in favour of the tax, with 17 per cent undecided.
That compares to a similar poll conducted by the Australian Bankers' Association which put opposition to the levy as high as 80 per cent.
Australia Institute senior economist Matt Grundnoff has also examined the levy itself and said the budget impost was affordable for the banks and could help grow jobs.
"If revenue raised in this way that was then spent on labour intensive services like health and education, it would be a net job creator," he said.
Nevertheless, the bank tax remains in serious doubt with the South Australian opposition vowing on Monday to block it in state parliament.
Opposition Leader Steven Marshall reaffirmed that stand in his budget reply speech on Tuesday, describing the levy as a populist attack on the banks.
The Labor government hopes to raise $370 million over four years from the ANZ, Westpac, Commonwealth, NAB and Macquarie banks based on their liabilities across the country.
A similar federal government bank levy aims to generate $6.2 billion from the same institutions to help repair the budget.
Premier Jay Weatherill defended the levy on Tuesday and said every cent raised would go towards job creation measures.
