Lambie backs call for transaction tax

Independent senator Jacqui Lambie is backing a tax on financial market transactions which could raise over $1 billion of revenue.

The Australian Institute is proposing a tax of between 0.01 per cent and 0.4 per cent on transactions, arguing it was a sound economic policy the benefits of which outweighed the costs.

Senator Lambie said the "Tobin Tax", which applies in other countries, should be applied to companies co-located within the stock exchange that used so-called super computers to scalp the system.