Aust Conservatives to reject bank tax

The Australian Conservatives will call for a rejection of the South Australian government's controversial bank tax, arguing it will inevitably be passed on to consumers.

South Australian MLC Dennis Hood described the additional tax as a "time bomb" and said it will affect mums and dads, pensioners, families, farmers and businesses while institutions walk away unscathed.

"There is no doubt this tax would be passed on to consumers no matter what the treasurer says," Mr Hood said in a statement on Sunday.

"This government needs to stop taxing and slugging families and businesses and properly do the job of stimulating businesses and growing jobs."

He said the tax would also affect South Australians who directly own shares in banks or have a stake in them through their superannuation.