Speculation that Labor will levy banks sent financial stocks tumbling today, but the market still managed a higher close despite the major lenders weighing.
At 1615 AEST official market close, the S&P/ASX 200 benchmark index rose 0.19% to 5,061.5 points, while the broader All Ordinaries index lifted 0.23% to 5,047.1 points.
Finance Minister Penny Wong did not rule out speculation that the government will announce a deposit insurance levy to provide funds for potential future bailouts and shore up the budget bottom line.
IG analyst Chris Weston said buyers stood aside as the market considered the impact of the levy on earnings.
"One suspects these charges will be passed straight onto the consumer anyhow," Mr Weston said.
"This levy however should not be a major negative for the banks."