Angry bankers say they've been left with more questions than answers after meeting with Treasury officials over the $6.2 billion levy the biggest five institutions are set to pay in a surprise new Budget measure.
Bank representatives met with officials in Sydney on Thursday, insisting it was the first time they'd been consulted on the new tax.
But they left complaining major issues were left unaddressed.
"Treasury officials it seems were unable to answer some very important and basic questions," Australian Bankers' Association chief executive Anna Bligh told reporters.
The ABA wants to know how Treasury came up with the $6.2 billion estimate, how the new tax will affect transactions between the big four banks, Macquarie and the Reserve Bank, and how that would affect the wider economy.
They also remain in the dark over which commercial activities will be captured by the tax.
Ms Bligh said the measure was "policy concocted on the run" and "a political tax grab to fill a Budget black hole".
"This is emerging as a shambles for the government," she said.
"It is an insult to banks to be given a 24-hour turnaround on legislation that goes directly to the commercial operation of their business and the well-being of their customers."
Ms Bligh said banks would only have a day to respond to draft legislation for the levy when it would be given to them next Wednesday. The draft will not be released for public consultation.
“Serious questions need to be asked about the indecent haste with which this new bill is being shoehorned into Parliament in a way that will avoid normal drafting and review processes and the scrutiny that should accompany such a critically important piece of legislation," she said.
Treasurer Scott Morrison insists the levy unveiled in this week's budget is standard in many other countries.
He's also urged bankers not to pass on the levy to customers.
Chief executives of Commonwealth Bank, National Australia Bank, ANZ and Westpac have all labelled Mr Morrison's levy a "bank tax", with three of the four explicitly saying the cost will be passed on.
Former prime minister John Howard has also called it a tax.
Watch: Australian Banking Association CEO slams budget bank levy
Qantas CEO Alan Joyce said surprises and uncertainty are not good for business, as he warned against making Australia less competitive.
"What's important is that we have all of our industries, all of our businesses being competitive. That they have certainty about policy," he told ABC Radio on Thursday.
As the boss of a company which has other corporations as customers, Mr Joyce said he wanted to see others continue to grow and do well.
The Australian Competition and Consumer Commission will be asked to monitor the banks' response when the levy is implemented.
