The idea of a tax on companies like Facebook, Google, and YouTube is being seen as one of fairness.
The Government's waiting to see if the OECD comes up with a solution to taxing the digital economy this year, but in the mean time, it is also proposing a flat tax of three per cent on digital services, but that would only generate $30 to $80-million.
DLA Piper tax lawyer David Johnston told Kate Hawkesby it's probably worth the paperwork.
"I mean, I think what the government is saying is there seems to be a big hole here and it doesn't feel fair some of these big international companies are making big profits in a country without paying any tax."
He says some of those big international companies have been making large profits without even having anyone on the ground.
"They're looking at introducing this tax, at least putting through legislation in2020, so I think they feel like it's a topic they have general public support on and they can do it in an election year."
Johnston says only time will tell whether the OECD comes up with a solution but says it's not particularly likely at all.
"You know they've, since about 2015 to come up wit a solution with how to tax these companies and they haven't come up with one yet, so we're just waiting to see really."
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