'Harsh' budget bank levy will be passed on to consumers: market analysts

Jonathan Shapiro and James Eyers

Updated May 11, 2017 – 12.43am, first published at May 9, 2017 – 10.35pm

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Investors and market analysts say the federal government's levy to be imposed on the six largest banks was harsh and would hurt profits but expected depositors and customers to ultimately foot the bill.

Treasurer Scott Morrison unveiled the levy on the liabilities of the biggest five banks would raise $6.2 billion over four years as part of Tuesday night's budget.

Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.

James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay