The Australian share market has closed lower as the battle between the Turnbull government and the big banks over a proposed $6.2 billion levy on Australia’s five biggest financial institutions continues to weigh upon investor sentiment towards the financial sector.

At 1615 AEST, the benchmark S&P/ASX200 was down 64.5 points, or 1.1 per cent, at 5,786 points, while the broader All Ordinaries index was down 61 points, or 1.04 per cent, at 5,821.2 points.

The June SPI200 futures contract was down 74 points, or 1.26 per cent, at 5,780 points.