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SYDNEY, July 3 (Reuters) - The parliamentary opposition of the state of South Australia said on Monday it will block a controversial bank tax after the government unexpectedly announced the revenue-raising move at its annual budget.
The leader of the conservative Liberal party, Steven Marshall, said his party will vote against the tax which the government said last month would raise A$370 million ($284 million) from five of the country's biggest lenders over four years.
Marshall's party has the numbers to block the tax in the state's upper house, in conjunction with cross-bench lawmakers who have already said they oppose it.
"This is a toxic tax on jobs in South Australia," Marshall told reporters.
"We are going to block this tax, we are going to put the people of South Australia forward and we are going to create jobs."
Marshall's party holds eight of the state parliament's 22 upper house seats, but he said his party had the support of three independent policymakers to reject the levy.
The federal government has said its tax was a much-needed revenue-raising measure from profitable banks to plug Australia's yawning budget deficit.
Unsurprisingly banks have been vocal in their opposition, although there is broad popular support for the levy amid strong anti-bank sentiment following a series of misconduct scandals. ($1 = 1.3029 Australian dollars)