Xenophon backs tax on foreign banks

Key crossbencher Nick Xenophon wants Labor to side with him and get the government's bank levy extended to foreign banks as well as the five biggest Australian institutions.

The South Australian senator, who leads the Nick Xenophon Team's Senate trio, supports the broad principles of the 0.6 per cent levy, which is set to raise $6.2 billion over four years.

But he agrees with the big banks saying foreigners in the market should be hit with the new tax as well, he told ABC TV on Sunday.