A Sun-Herald survey of the big four banks, as well as six second-tier banks, including St George and the Bank of Melbourne, asked whether delays over the government's budget measures were harming the economy. ANZ chief executive Mike Smith said they were certainly not helping. "They [the government] have a clear mandate to govern and should be allowed to get on with it," he said, in a swipe at the Senate. CBA chief executive Ian Narev said when there was uncertainty in global markets, businesses wanted certainty in domestic policy. "But these delays are not good for confidence," he said, without pointing to specific impacts.

Bankwest managing director Rob De Luca said the delays in passing key measures in the Senate were adding to anxiety for businesses and households at a time when consumer sentiment was fragile. The six participating listed banks have a market value of about $320 billion. In the survey, the bank chief executives also cited possible economic reforms, with Mr Smith supporting an increased goods and services tax on more goods and a call for substantial boosts to superannuation. Westpac declined to comment because chief executive Gail Kelly is retiring. St George chief executive officer George Frazis blamed the budget delays partly on a poor selling job, saying communicating the long-term vision was critical.

The 10-question survey asked the banks about whether the GST should change, the direction of interest rates, property values, and whether Australia was obsessed by home ownership. NAB chief executive officer Andrew Thorburn said although the bank felt there was evidence of some "green shoots", unemployment could peak at about 6.75 per cent, higher than the 6.3 per cent jobless rate announced this week and far higher The banks' concern about the Abbott budget came after Reserve Bank governor Glenn Stevens hit out at Canberra's failure to "get real" about the budget, warning Australia's AAA credit rating could be threatened. Mr Hockey has admitted making mistakes in selling the May budget's saving measures. One of the significant challenges facing the budget, to be revealed in the Mid-Year Economic and Fiscal Outlook on Monday, was the significant financial savings measures held up or opposed in the Senate, he said.

"Mr Shorten took great pride in his opposition this year, saying '2014 was defined by the force of Labor's resistance'," he said. "Australia simply cannot afford that blind opposition." However, Mr Shorten fired back on Saturday at Mr Hockey's failure to bring the budget back into balance by his stated target of 2019. "Joe Hockey said, when he got to power with Tony Abbott, that they would be in surplus within the first year, then within the first term. These guys are writing new dictionaries of excuses," he said. "I'm surprised they haven't said 'the cat ate my homework' before Monday's mini-budget." The banks surveyed believed the official Reserve Bank rate would remain on hold next year, although the economics departments of two of the banks are predicting cuts.

The NAB said its economists expected the cash rate in Australia would remain at record lows for a while yet. The banks also gave their weight to the government's white paper on tax next year. They said the GST was looking ragged and most wanted it increased or at least broadened, but offset by other tax cuts, including to income tax. A broader-based GST would tax food. "It's unrealistic to leave it [the GST] where it is and we probably need to have a national conversation about broadening the base. We should look at the success of the New Zealand model, which has significantly lower personal and business taxes but a much broader-based consumption tax," Mr Smith said.

Bendigo and Adelaide Bank managing directorMike Hirst said the GST rate was low by international standards. "I would have thought a modest increase in the rate was justified. We'd need to look at compensating people on low incomes so we don't impact on their living standards." The slump in commodity prices and an ageing population highlighted the fragility of the current tax base, Mr Hirst said. Other comments by the bank heads related to super, property prices, trustworthiness and debt, with Mr Thorburn predicting slower growth in housing prices in Melbourne and Sydney.

On encouraging more self-funded retirement, Mr Narev said a conducive policy environment was needed, including moving the superannuation guarantee to 12 per cent from 9.5 per cent. The bank chief executives conceded banks needed to work at building trust. "Affordable and trusted financial advice is more important than ever, and industry needs to do more to earn greater trust," Mr Thorburn said. Mr Smith said customer satisfaction levels at ANZ were at record highs, but added: "I think there's an institutional dislike of banks in Australia, possibly even emanating from the days of Ned Kelly."

Is the delay over the government's budget measures harming the economy? Mike Smith, ANZ: It's certainly not helping. They have a clear mandate to govern and should be allowed to get on with it. Ian Narev, CBA: When we have uncertainty in global markets, businesses in particular want to see certainty in the domestic policy environment. I can't point to specific impacts. But these delays are not good for confidence. Andrew Thorburn, NAB: It is important for business and individuals to have certainty in order to plan for their future and there is obviously still a lot of debate around the budget. I know the government is working hard to secure the passage of budget measures and their goal of returning the budget to surplus is encouraging. George Frazis, St George: The priority for all politicians must remain on managing the long-term structural deficit and I think it's important that the budget is put on a long-term sustainable footing in a way that doesn't undermine current economic conditions and continues to facilitate growth. Communicating the long-term vision is critical

Jon Sutton, Bank of Queensland: Uncertainty of any kind can potentially impact markets and the economy. John Nesbitt, Suncorp: We would like to see more bipartisanship across all levels of government to ensure we face the challenges imposed on the country with a united front. Political uncertainty, which is a common theme across the globe, is always a negative for investment and investment is essential in creating jobs, growing our communities and strengthening our economy. Consumer confidence will rise and economic activity will improve globally with strong leadership. Rob De Luca, Bankwest: The delays in passing key government budget measures in the Senate are adding to anxiety for both businesses and households at a time when consumer sentiment is fragile. With plenty of external challenges, it is crucial to minimise domestic uncertainties. Scott Tanner, Bank of Melbourne: Australia's long-term structural deficit needs to be addressed. It's important that the budget is sustainable over the long term and supports economic growth. Legislation often needs to be negotiated through parliament. Thisovernment, like many before, is doing that. Mike Hirst, Bendigo Bank: Markets hate uncertainty and things remain uncertain, so yes.

Steve James, Teachers Mutual Bank: With $30 billion of cost reductions and additional revenue held up in parliament, I would say a qualified yes. But consumer confidence has recovered after the budget announcement, so consumers may be becoming immune to the budget delays. Business confidence increased on the back of the budget, but has been declining recently. Does the GST need to be changed? Mike Smith, ANZ: It's unrealistic to leave it where it is and we probably need to have national conversation about broadening the base. We should look at the success of the New Zealand model which has significantly lower personal and business taxes but a much broader based consumption tax. I must stress though that you can't leave income and business tax where it is if you are going to make changes to the GST base. George Frazis, St George: It's important we have a productive, rather than political debate about the GST and about Australia's taxation system more broadly. The GST is more than a decade old so it's a sensible time to start considering its next 10 years.

Mike Hirst, Bendigo Bank: Given our GST rate is low by international comparisons I would have thought a modest increase in the rate was justified, but given it's a regressive tax, we'd need to look at compensating people on low incomes so we don't affecttheir living standards. Are property prices too high? Mike Smith, ANZ: Not really. You have to remember that Australia is not a homogenous market and I wouldn't say values have been climbing steeply in Brisbane for instance. I think it's been more of an issue for Melbourne and Sydney, but with increased supply coming on in the apartment market, I think we are already starting to see the market soften a little. George Frazis, St George: Although housing is expensive, I see this as mostly a consequence of a major supply-demand imbalance rather than speculative activity. A shortage of housing combined with low interest rates and a strong surge in population growth has created an undersupply of housing. There are some signs that the pace of house price growth is started to temper. Andrew Thorburn, NAB: Obviously there are some areas of Australia, particularly inner Melbourne and Sydney, which have seen significant growth in house prices, but equally there are other areas of the country haven't experienced the same level of growth. We are operating in a global property market, which is influencing house prices in Australia – and this is also contributing to substantial growth in our national wealth.

Why are the banks so disliked? Mike Smith, ANZ: It's a strange situation when you consider customer satisfaction levels across the board are at record highs. I think there's an institutional dislike of banks in Australia, possibly even emanating from the days of Ned Kelly, meaning the industry needs to work even harder to win the trust of our all stakeholders. Jon Sutton, Bank of Queensland: I think there's a big difference between public perception of the major banks and challenger banks like BOQ. BOQ's customer satisfaction and advocacy ratings are very strong and work hard at constantly improving customers' experiences. Mike Hirst, Bendigo Bank: If you look back 25 years there was a bank on every corner and no one paid transaction fees. Banks did a very poor job of explaining the market changes that forced them to close branches and introduce fees – and the fact is that opening up our economy to competition did change banking fundamentally. In recent years banks have done a lot of genuinely good work to improve their public standing.