Tech giants targeted on tax

Tech giants targeted on tax

Treasurer Scott Morrison revealed new regulations in the federal budget on Tuesday to crack down on multinational digital and tech companies known to pay minimal tax in Australia.

Mr Morrison wants tech giants such as Google and Facebook to pay their fair share of tax. Under existing frameworks, digital businesses can have a major economic presence in Australia without making a significant contribution to tax revenues here.

The crackdown is a continuation of tighter tax rules which came into effect at the end of 2015. It ensures that multinational firms pay their share of tax on the profits earned in Australia from an estimated $7 billion a year in sales revenue.

In his speech, Mr Morrison said he would release a discussion paper in the next few weeks that would consider options for taxing digital businesses, such as Google and Facebook, in Australia.

Aside from the budget, the impact the tech giants have on Australia’s media ecosystem is under scrutiny in a world-first inquiry being conducted by the Australian Competition and Consumer Commission.