Independent senator proposes five per cent tax on AI data centres

Summarised from 2 outlets · Updated 21 Oct, 07:02 · Archive

Australian senator David Pocock has proposed a five per cent tax on artificial intelligence data centres' local revenue from 2027.

Independent senator David Pocock has called for a five per cent tax on artificial intelligence data centres' local revenue, to begin on January 1, 2027. Speaking at the National Press Club in Canberra on Wednesday, he argued that governments prioritise powerful interests over Australian voters and are failing to meet the moment on artificial intelligence.

Pocock highlighted that over 1000 major companies, including Optus, Transurban and Adani, pay no company tax. He noted that a forecast £200 billion investment in data centres occurs while foreign data centre companies contribute little to no corporate tax in Australia. He said the proposed levy is modest given this context.

The Australian Academy of Science, which previously called for a 2.5 per cent levy on data centres' local revenue, welcomed Pocock's proposal. Analysis by the Parliamentary Budget Office suggests the policy would generate about £400 million within three years and scale up to £1 billion in the coming decade. The Reserve Bank deputy governor Andrew Hauser said the issue was a live debate governments needed to consider. However, the budget office cautioned that its analysis is subject to a high degree of uncertainty as the future rollout of AI in Australia remains largely speculative.

Independent senator proposes five per cent tax on AI data centres — Image: The West Australian

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How it is being reported

'Blind to community': independent flags data centre taxGovernments aren't meeting the moment on artificial intelligence, an ACT senator says, as community and tech industry concerns are overlooked.The West Australian · 21 Oct, 06:52
'Blind to community': independent flags data centre taxGovernments aren't meeting the moment on artificial intelligence, an ACT senator says, as community and tech industry concerns are overlooked.Perth Now · 21 Oct, 06:52

In this story: David Pocock · Australian Academy of Science · Reserve Bank of Australia · Parliamentary Budget Office · Australia

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