Streaming giant Netflix and other major global platforms would be the target of a new plan to tackle multi-national tax avoidance being developed by federal Labor.
Shadow assistant minister for treasury Andrew Leigh has revealed Labor will take a refreshed plan to force companies to pay a greater share of tax in Australia to the next election.
Labor pitched a package of policies to crackdown on companies shifting profits offshore ahead of the 2019 poll, including a proposal to ban businesses based in notorious tax havens from using tax loopholes in Australia.
While details are yet to be released, Dr Leigh said Labor's new policy would be informed by the renewed effort globally to avoid a "race to the bottom" on corporate tax rates - led by international economic body the Organisation for Economic Co-operation and Development [OECD].
Labor has companies such Netflix in its sights. The streaming service reportedly paid just $550,000 in tax in Australia in 2020, despite bringing an estimated sum of more than $1 billion from local customers.
The company has been criticised - including by Dr Leigh - for using a Netherlands-based subsidiary to lower its domestic tax bill in Australia and other jurisdictions.
"We love our streaming services, but there is no reason that Netflix should be getting a leg up on start-ups that wanted to run streaming services here," Dr Leigh told The Canberra Times.
"We are also very aware of the growing use of tax havens and the extent to which tax havens are now accounting for about $2 in $5 of multi-national profits.
"If that continues then ultimately that saps the corporate tax base, but also means that there is not a level playing field between tax-dodging multi-nationals and regular Australian businesses."
The Canberra Times contacted Netflix for comment, but did not receive a response before deadline.
