Australia plans to tax all digital transactions under new plan: treasurer

BY  | FROM  | 2017-01-11 14:54

 The Australian government will look to tax all online transactions, Treasurer Scott Morrison said on Wednesday, as part of a so-called 'tax strike' on the rapidly-growing digital economy.

Currently, the government is unable to tax all of Australia's approximately 10 billion Australian dollars (7.37 billion U.S. dollars) annual online transactions, however Morrison told News Corp on Wednesday that as Australia moves towards a modern, cashless economy, the government must keep up to ensure the tax system remains "modern".

He said after imposing the "Google" and "Netflix" taxes, which ensure multinational corporations and online services are properly taxed for all sales in Australia, the government is taking aim at the wider online and digital marketplace to ensure everybody is paying their fair share of tax.

"You've got to make sure your tax base is just not comprehensive but make sure it is modern," the Treasurer told News Corp.

"That's not a criticism of anything previously, but you've got to make sure it is keeping pace with the digital economy."

"The tax system will have to change to embrace the new world order when it comes to technology and how people are consuming services," Morrison said.

"The thing about the digital economy is that it is all automatic," Morrison said, adding he expects to introduce changes to the tax system at the May budget.

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