Just in case you needed another reminder that Turnbull and his Liberals are hopelessly divided, today we have confirmation that yet again Malcolm Turnbull has cut his own Treasurer out of the loop on the Banking Royal Commission terms of reference.

It was revealed nearly a week ago that the Prime Minister and his Minister for Financial Services began working on terms of reference for a banking commission "a long time" ago as they understood that a Banking Royal Commission was inevitable.

Compare this with Slomos comments this morning:

TREASURER: There were absolutely no plans to hold a Royal Commission at all Ross, and the Prime Minister said just last Tuesday week that we would not be doing that and that was absolutely the Governments position.

GREENWOOD: But you had written the terms of reference.

TREASURER: No we hadnt written the terms of reference.

Something doesnt add up.

Labor welcomes the fact that the Government has finally relented after 18 months and agreed very reluctantly to a Royal Commission. We remain concerned that Turnbulls backflip of all backflips means that Government is still divided on the issue and scrambling on the details.

Labor will continue to work to ensure the Royal Commission delivers justice to the families and small businesses that have suffered because of the misconduct in the banking and financial services sector.