Here's why Australia should extend the new levy to foreign banks

Doing so may raise up to US$4.6b.

A Bloomberg report says Australia should extend its new bank levy to foreign financial institutions in a bid to recoup more than the planned A$6.2 billion ($4.6 billion), according to cross-bench lawmaker Nick Xenophon.

"Applying the tax to foreign banks as well as the nation’s five biggest lenders may recoup as much as A$800 million, which could help fund compensation for victims of financial mismanagement and fraud, Senator Xenophon told the Australian Broadcasting Corp. Sunday. The lawmaker plans to consult with the opposition Labor Party to determine if it will support his position," adds Bloomberg.

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