The Australian Greens will take the European Commission's proposal for a financial transaction tax to next week's tax forum.
"In an era where global financial institutions have been supported by the public purse it is appropriate that a new tax be considered. The IMF has estimated that a tiny transaction tax could raise more than $200 billion each year," Australian Greens Leader Bob Brown said in Hobart today.
"The latest proposal overnight from the European Commission is for a rate of 0.1% on all transactions between institutions when at least one party is based in the EU. Derivative contracts would be taxed at a rate of 0.01% - this is 1 ten-thousandth," Senator Brown said.
"The EC's backing of long-held Greens' policy is an important breakthrough. It is critical that the initiative be seized on by governments around the world. A global financial transaction tax could be used to effectively end much of the world's poverty - providing funding for water, food production and education."
"Australia should propose the issue at the next G20 summit, so that the financial transaction tax can be presented as a global initiative and addressing the British government's concerns that for a tax to be effective it should be world-wide," Senator Brown said.
A submission supporting a financial transactions tax has also been sent to the tax forum by the Robin Hood Tax Australian Coalition.