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.

The ABC understands the Government is planning to go ahead with the move in the next budget.

Speaking at the Victorian Liberal State Council meeting Mr Abbott has repeated his budget message, focusing on families and small businesses.

“There will be tough decisions in this year’s budget as there must be, but there will also be good news.”

The banking industry has raised concerns about a deposit tax, saying it will have to pass the cost back onto customers.

Bank deposit tax will break election promises: Labor

The Federal Opposition has accused the Government of breaking an election promise by planning to introduce a tax on bank deposits.

The former Labor Government put forward the policy in 2013 to raise revenue for a fund to protect customers in the event of a banking collapse.

Shadow Assistant Treasurer Andrew Leigh said Treasurer Joe Hockey criticised the proposal at the time.

“When we put it on the table Joe Hockey said that it was a smash and grab on Australian households just aimed at repairing the budget,” he said.

“I don’t think we’re going to take any lessons on bipartisanship from Joe Hockey. If he’s got any serious proposal to put on the table Labor will respond to that.”