Scott Morrison clears the way for tax cuts in 2018

The banks say they've walked away from a meeting with Treasury officials on Thursday with more questions about the tax than answers.

Asked if the banks would mount a mining tax-style ad campaign against the tax, she said: "The banks will continue to prosecute this issue in a number of ways".

Mr Morrison warned the banks not to put up fees to cope with this new tax during an address at the National Press Club in Canberra on Wednesday.

The Treasurer said an extension of the rules involving foreign partnerships or trusts, plus new tax integrity measures recommended by the government's Black Economy Taskforce, would help raise a further $4 billion over the forward estimates.

TWO of the big four banks' bosses separately found out details of Scott Morrison's Budget plan to rip $6.2 billion from them after meetings with anxious investors.

Morrison said $6.2bn would be raised over four years by the new levy on big five: ANZ Bank, Westpac, National Australia Bank, Commonwealth, and Macquarie.

"If in breach, they can be deregistered and disqualified from holding executive positions, and be stripped of their significant bonuses", the Treasurer said.

New Zealand banking expert Claire Matthews, of Massey University, said there would not be a direct impact on New Zealand customers as a result of the levy, because New Zealand banks are separate subsidiaries of their Australian parents. "We are not sending lawyers around the country for three years, we are acting now", the Treasurer said, in reference to a royal commission.

"Who are the shareholders of Australian banks?"

"The levy will only affect our five largest banks with deposits of $100 billion or more and does not apply to superannuation funds or insurance companies", he said. This is not a levy on their mortgages.

Rumours the banks were under attack leaked ahead of the federal budget.

MELBOURNE, Australia-Banking shares weighed on the Australian stock market on Friday, as investors continued to digest the government's plans for a levy on the liabilities of the country's biggest lenders.

Adding that the banking sector is already the largest taxpayer in corporate Australia, and has "significantly strengthened its capital and liquidity base to ensure it is unquestionably strong and does not have to rely on implicit guarantees from government", Mr Elliott said that the bank believed the "initial public support for the tax will prove to be misplaced". It might be on credit.

"The only people paying more tax from July 1 this year are the banks and multi-nationals", Mr Morrison said, in a line that could have come directly from the ALP play book.

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