The Federal Government looks set to introduce a tax on bank deposits in the May budget.
The idea of a bank deposit tax was raised by Labor in 2013 and was criticised by Tony Abbott at the time.
Assistant Treasurer Josh Frydenberg has indicated an announcement on the new tax could be made before the budget.
The Government is heading for a fight with the banking industry, which has warned it will have to pass the cost back onto customers.
Mr Frydenberg is a member of the Government’s Expenditure Review Committee but has refused to provide any details.
“Any announcements or decisions around this proposed policy which we discussed at the last election will be made in the lead up or on budget night,” he said.
Speaking at the Victorian Liberal State Council meeting Mr Abbott has repeated his budget message, focusing on families and small businesses.
