The coalition government says it's committed to a new bank levy even as some of Australia's largest lenders say they can't afford to absorb the $6.2-billion cost.
Submissions to the government from some of the five-banks* affected have called for the Budget proposal to be extended to foreign financial institutions.
The government has asked the banks not to pass on the costs to customers, but concedes it cannot stop this from happening.
The Assistant Minister to the Treasurer, Michael Sukkar, told the A-B-C the levy represents a small portion of the banks' income.
Meanwhile, the chairman of the National Australia Bank (NAB), Ken Henry, is calling for a full public inquiry into the federal government's proposed bank tax.
Dr Henry, who is a former Secretary of the Treasury Department, insists the tax would cost N-A-B more than 300-million-dollars a year.
He told The Australian newspaper the government should have acted more responsibly and explained on Budget night that the tax will be borne by customers and shareholders.
