The Australian Greens have called for major technology companies to pay a digital services tax that could see A$11.5 billion raised over the medium term.
This proposal would tax digital services revenue over $20 million at a rate of 3% for businesses making over €750 million in revenue worldwide. Companies like Google and Amazon are collectively making $26.7 billion in revenue from Australians each year, according to a Parliamentary Budget Office report.
“Companies that trade in Australia need to pay tax on the money they make in Australia. Global tech giants are making billions of dollars in revenue in Australia while paying very little in tax,” said Senator Sarah Hanson-Young, Greens communications spokesperson.
“A digital services tax is the first step in reining in the astronomical power that big tech companies currently wield. Not only are they making super profits, they are harvesting and selling the personal data of millions of Australians and ripping off Australian journalists and creators.”
Google saw over $8.5 billion in revenue in Australia in 2022-2023, the most of any major technology company, according to the report.
Amazon made nearly $6 billion in Australia, with Microsoft and Uber raising over $2.9 billion.
Under the Greens’ plan, the taxation revenue would be invested into public services, including cost of living relief. The party will push for the proposal after this year’s federal election, which is due on or before 17 May.
The federal government also said in December that it would introduce a news bargaining incentive that could charge social media platforms making over $250 million in Australian revenue, with the goal of raising funds for the Australian press.
A digital services tax is active in 12 countries worldwide, including the United Kingdom and France. Canada became among the most recent last year, after a tax entered into effect in June.
Last month, United States President Donald Trump ordered his administration to consider additional tariffs on countries with digital services taxes, arguing that these measures unfairly target American companies.
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