Senate approves NBN tax to block competition

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The Senate has approved the Morrison Government’s broadband tax for residential and business users of non-NBN services, meaning it is set to go ahead from 1 July:

The bill, which was examined alongside a complementary bill to establish NBN Co as the new default fixed-line operator in Australia, will see residential and business users of “NBN-equivalent” fixed line services hit with a monthly fee of $7.10.

NBN Co will use the proceeds of the tax to fund future costs of commercially unviable portions of its network – the satellite and fixed wireless footprints – and prevent future calls on the public purse, though it has long been unclear how the tax would fulfil this.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.