UPDATE 1.50pm: A proposal by the Australian Greens to have an additional tax on the profits of the big four banks already appears dead in the water.
Federal Treasurer Wayne Swan said he wouldn't consider such a scheme.
The Greens want a levy of 0.2 per cent on all bank assets above $100 billion in return for Federal Government guarantees, which the independent Parliamentary Budget Office has costed as raising $11 billion over the next four years.
The plan would only apply to the ANZ Bank, Commonwealth Bank, National Australia Bank and Westpac.
Greens deputy leader Adam Bandt says the plan mirrored a European Union levy based on International Monetary Fund recommendations.
"At a time when there's pressures on the budget, and the government is looking around for ways of raising revenue, especially in light of the failed mining tax, who can afford to pay it the most?” Mr Bandt told reporters in Melbourne this morning.
"If we don't stand up to the big banks and the big miners, then Labor is going to come after the rest of us, like they have with single parents, and like they are threatening with the forthcoming budget."
He said everything Labor had done had made it easier for the big four banks to make bigger profits off the backs of consumers.
But a spokesman for Mr Swan dismissed the idea.
"As we have said time and time again, this is not something under consideration from the government,” the spokesman told AAP.
He said the government had implemented a comprehensive banking competition package that allowed consumers easier movement between banks if they were not happy with them.
During the 2008-2009 global financial crisis, the government introduced bank guarantees to protect deposits and funding, which are estimated to bring $5 billion in fees for the government.
Similar measures were taken by other countries as a series of banks toppled in the US and across Europe.
The Australian Bankers' Association warned that if the Greens policy was adopted it would effectively amount to a tax on Australian's retirement savings.
The association's chief executive Steven Munchenberg said the majority of bank profits were paid through dividends to mum and dad shareholders and superannuation funds.
"Taxing banks' profits reduces those returns for working Australians saving for their retirement through superannuation accounts and to retirees who are increasingly dependent upon positive business profit growth,” he said in a statement.
He said banks paid out a record $19 billion in dividends last year, 7 per cent more than 2011, while over the past five years banks had paid out $82 billion in dividends.
Mr Bandt described the banking industry's response as “standover tactics".
"The average Australian pays much more in banks' fees and charges than they get back though superannuation schemes,” he said in a statement.
The Greens' banks plan follows its proposal to close loopholes in the government's mining tax after it raised a mere $126 million in its first six months of operation.Comment has been sought from the coalition, but support for the Greens' plan would seem unlikely given their opposition to the mining tax, which they have said they would scrap in government.
The new magazine for a new generation of West Australians.Click here to download »
All the latest market figures from Australia and the world.Click here »
'The West Australian' is a trademark of West Australian Newspapers Limited 2013.
All rights reserved.
Select your state to see news for your area.