It would be fair to say that the Tax Office is not considered the most modern and proactive government agency 

They are struggling to keep on top of the changing business world, which has become more global and invisible; online shops (Amazon) with goods delivered from another country or content delivered online like Netflix. Netflix and other offshore businesses that provide goods, services or content to Australian residents in excess of $75,000 will be liable to pay GST on there Sales and this includes items under $1,000. Google other multinationals whose revenue in Australia is significant and tax paid minimal due to profit diversion strategies will be subject to a higher company tax rate (40 not 30%) on profits.

Every economy in the world is having these leakage problems due to the online global economy. No Government has come up with ‘THE WAY’ to capture this tax revenue fairly yet and the online world continues to grow, so this will be an ongoing challenge for the Tax Offices globally for some time.

The Treasurer is keen to pursue the above reforms to make the tax system fairer and more equitable to all; with this leakage offshore it means all us residents need to pay more tax to make up for it or have less services from the Government.

These reforms are good new for the average Australian resident paying tax as the more tax they can get from the multinationals the less they need from you.

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