A new push for a full-scale probe into the Australian banking sector is set to test the resolve of key Nationals agitators and the Labor opposition – both have campaigned hard against poor bank behaviour, and promised to back a royal commission if given a chance.

The Greens have commissioned novel legislation aiming to establish a parliamentary commission of inquiry into the big four banks following years of complaints about hidden fees and charges, credit card gouging, alleged collusion over interest rates, dishonoured insurance policies and squandered life savings.

Queensland LNP George Christensen Credit:Andrew Meares

The plan, presented as a potential game-changer, involves creating the parliamentary equivalent of a royal commission using similar terms of reference and structure, the appointment of a three-judge panel, identical powers to compel witnesses but reporting to the Parliament rather than the government.

It is a form of inquiry used only once before in Australia.