Treasurer Scott Morrison has written into law the rate that Australia's big five banks will be charged under the $6.2 billion major banks' levy.
Clancy Yeates writes on business specialising in financial services. Clancy is based in our Sydney newsroom.
Government stare down claims of $2 billion 'black hole' in revenue its bank tax will raise.
The big four banks expect to pay $965 million combined in extra tax as a result of the government's new bank levy.
Banks continued to donate to Labor despite the party's pursuit of a royal commission but the big four continued a tradition of giving more funds to the Coalition.
The Commonwealth and National Australia Banks have short-changed their mortgage holders by passing on only a fraction of the Reserve Bank's 0.25 per cent cut in interest rates, choosing instead to reward depositors by lifting the rate they offer on term deposits.