Treasurer Chris Bowen is expected to give details about the Federal Government's economic statement which includes levy on the banking industry, increase in tobacco cut out and the government's policy boost for the car industry. With this, Prime Minister Kevin Rudd is expected to call on election dates on Saturday, August 3, 2013.

According to a report from ABC, the levy on the banking industry that is set to start on Jan 1, 2016 will be set at 0.05 per cent on deposits of up to $250,000. The levy is expected to reach up to $733 million when it takes effect in the first 18 months.

The money that will be raised from the levy will go into a new Financial Stability Fund as a reserved budget in case of a bank collapse. The levy will be taken from the banks and not directly from account holders but as predicted, these banks will pass the levy on their depositors.

On Thursday, Aug 1, Mr Bowen had already consulted with the Australian Banking association and credit unions in Sydney regarding the deposit protection levy.

Mr Bowen said that the decision to have a levy on banks came as a result of a report from the International Monetary Fund (IMF) saying that there is a gap with Australia's public policy when it comes to "provisioning for any potential bank or deposit-taking institution failure."

"I've been consulting with banks about how we make sure that there's money set aside in the unfortunate and very unlikely event that as deposit-taking institution in Australia comes to difficulty. It will be quarantined from the rest of the budget and put aside in case there's ever a need with a bank getting into trouble in Australia. It hasn't happened in Australia in quite a while, but we can't get complacent," Mr Bowen explained.

However, bank as well as government officials express deep concern about the federal government's economic statement.

Australian Bankers' Association Chief Executive Steven Munchenberg said that the levy seemed unnecessary as the financial system is stable.

"We do expect that banks will pass this on to customers in terms of lower interest rates on their deposits. If we don't pass it on to those customers with saving, then it will increase the funding costs of banks [and] there is the possibility that'll be passed on to borrowers," Mr Munchenberg said.

Opposition's Malcolm Turnbull was dubious about the levy.

"If it's going to fund the deposit guarantee it should be going into a separate escrow fund and not be part of the government's revenues that it can use for all of its other expenditures. It seems to me to be just, apparently, just another tax," Mr Turnball said.

Shadow Treasurer Joe Hockey refused to give the coalition's opinion on the matter, saying that the party "want to speak to the banks about it."

"With all due respect to Chris, he's on his L-plates as a treasurer and the fact is this is the Labor party and they always do this. If they do this just before an election imagine what they'll do if they win," Mr Hockey said.

He also said that the money from the levy will still go to the government's budget.

"It's all about that, it's not good public policy because why would they be doing that now?"

Shadow Assistant Treasurer Mathias Cormann expressed the same opinion on ABC TV, saying that the government is desperate for budget. He alleged that the government might have had over expenditures but chose to hide it through excuses like that of getting levy from banks.

Greens Deputy Leader Adam Brandt said that the government wasted a rather good policy for making it "squibbed in the face of powerful interests."

"This proposal will do nothing to level the playing field as it were, but just impose the same levy across the board, and potentially get that passed onto customers," Mr Brandt said.