Last year, the federal government implemented a Diverted Profits Tax (DPT), affectionately dubbed the “Google Tax”, which armed the Australian Taxation Office (ATO) with stronger powers to fight multinational tax avoidance. The DPT was budgeted to raise around $100 million in revenue a year from 2018-19.
Recently, news emerged that the Morrison Government was seeking to tax large digital companies via a “digital tax” that would tax fees received from Australian customers and an EU-style 3% tax on social media advertising.