The federal government will legislate to crack down on tax avoidance by 30 multinational companies, in a move that could raise “billions of dollars” in revenue.
Treasurer Joe Hockey confirmed that he would be beefing up existing rules to clamp down on tax avoidance schemes used by multinationals such as Google, Apple and Microsoft.
“These companies are diverting profits earned in Australia away from Australia to no-tax or low-tax jurisdictions,” Treasurer Joe Hockey told reporters in Canberra on Monday.
The draft laws will be released at the time of the federal budget on Tuesday.
Mr Hockey would not nominate a specific figure the government was hoping to recover under its crackdown.
“I am not going to make the same mistake that Labor made and bank money that is not identifiable,” he said.
Mr Hockey also announced that overseas digital suppliers of movie downloads, games and e-books will have to charge GST – the so-called ‘Netflix tax’.
He said the laws would level the playing field and raise $350 million over the next four years – all of which would go to the states.
“It is plainly unfair that a supplier of digital products into Australia is not charging the GST whilst someone locally has to charge the GST,” he told reporters in Canberra on Monday.
– with AAP