Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

I thank the member for Lindsay for her question. Today, once again, the Westpac survey shows there are more optimists than pessimists about the Australian economy. The optimists are on this side of the House; the pessimists are on that side of the House. One of the reasons we are so optimistic is about the opportunities this country has as our economy diversifies. For that we need a 21st century tax system that does many things—that is pro growth, but it also needs to ensure that companies, and particularly multinational companies, pay their fair share of tax.

It is incredibly important that we have a system that recognises the 21st century economy that we operate in, and that involves two key issues. First of all, we need to understand the digital economy and how a tax system engages with that. But we also need to understand the practices adopted by multinationals to ensure that they pay their fair share of tax on what is earned in this country and the transactions that take place here.

Earlier today, I introduced into the House new legislation that will ensure that digital services and products that are sold over the internet are captured by GST. If you are a foreign company, engaging with Australians here and you are selling digital products and services over the internet, you will pay GST. You will have to charge GST on that, and that will raise some $300 million a year, which will go to the states and territories and which will go to support the initiatives they are intending to put in place. This will ensure that they are taxed at the point of sale. This is a practical demonstration of the practical things that this side of the House is doing to ensure that we are capturing the revenue that should flow to the state and territory governments—

Mr Husic interjecting—

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