Pocock proposes 5 per cent tax on AI data centres

Summarised from 2 outlets · Updated 21 Oct, 23:28 · Archive

Australian senator David Pocock has proposed a 5 per cent levy on AI data centre revenues to generate over $500 million by 2030.

ACT independent senator David Pocock has proposed a 5 per cent levy on AI data centre revenues in Australia, saying the Federal Labor Government is being 'starstruck' by global artificial intelligence firms whilst ignoring community concerns about the technology.

Pocock says the tax would generate more than $500 million by the end of 2030 if started in January next year. Region Canberra reports that according to the Australian Tax Office's latest tax transparency report, Microsoft's Australian data centre business generated $2.3 billion in local revenue but paid no company tax.

Pocock made his proposals in a speech to the National Press Club on Wednesday, saying the tax would be 'modest'. He says the model has been costed by the Parliamentary Budget Office. He argues Australia should not repeat mistakes from the mining boom, when global corporations paid relatively little for the country's resources, and compares the revenue to Australia's annual spending on social and affordable housing through the Housing Australia Future Fund.

How it is being reported

• Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giantsACT independent senator David Pocock has accused the Federal Labor Government of being “starstruck” by artificial intelligence firms while ignoring community concerns about the emerging technology. To counter that, he has proposed a 5 per cent levy on AI data centre revenues in Australia, which he says would top up the budget by more than […]Region Canberra · 21 Oct, 22:52
• Pocock targets tech giants with proposed $3b data centre taxSenator says Albanese govt 'starstruck' by big tech, AI.The Canberra Times · 21 Oct, 03:15

In this story: David Pocock · Amazon · Microsoft · Google · Australian Tax Office · Australia

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