Senator David Pocock Calls for 5% Levy on Data-Centre Revenues

At a National Press Club address on October 21, independent ACT senator David Pocock announced a 5 percent levy on the revenues of AI data centres operating in Australia. He framed the levy as “modest” and argued it would capture long-term benefits from a forecast $200 billion investment in the sector. Pocock warned that foreign-owned data centres currently pay “little to no corporate tax,” citing the Australian Tax Office’s latest tax transparency report, which shows Microsoft’s Australian data-centre business generated $2.3 billion in local revenue but paid no company tax. He said the levy would help avoid a repeat of the mining-boom era, when multinational corporations contributed minimally to the national budget.

Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giants

Pocock, a member of the Joint Select Committee on Artificial Intelligence, used the same speech to call for a broader shift in Australian politics. He criticised the major-party system for prioritising “vested interests over community needs” and advocated for a minority government formed by independents and small community-focused parties. He highlighted the recent attack on fellow independent MP Helen Haines as a catalyst for his determination to push for a more representative political collective.

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• Senator Pocock’s estimate: the levy would raise $500 million by 2030 (SBS; Region).

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• Parliamentary Budget Office (PBO) analysis (reported by BunburyMail): the levy could generate about $400 million within three years, scaling to $1 billion over the coming decade; the PBO noted a high degree of uncertainty due to speculative AI rollout.

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Both figures are based on the same 5 percent rate but differ in projected timelines and assumptions, creating a notable discrepancy in expected revenue.

Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giants

• Pocock emphasized that the levy would fund social and affordable housing through the Housing Australia Future Fund, equating the annual levy revenue to the fund’s current spending.

Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giants

• The Australian Academy of Science, which previously recommended a 2.5 percent levy, welcomed Pocock’s 5 percent proposal as a step toward capturing the economic value of AI infrastructure.

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• In his address, Pocock also called for greater transparency around lobbyists and suggested a 25 percent tax on gas exports to free up budget resources for social programs.

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• Revenue projection gap: $500 million by 2030 (Pocock) vs. $400 million in three years and up to $1 billion over a decade (PBO). The sources do not reconcile these differences, and the PBO warns that the forecast is highly uncertain.

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• Tax compliance data: While Microsoft’s $2.3 billion revenue figure is cited, there is no comparable data for other major operators such as Amazon or Google, leaving the broader tax-avoidance picture incomplete.

Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giants

• “It’s a model I’ve had costed by the Parliamentary Budget Office and am releasing today,” — Senator Pocock, independent senator

Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giants

• “Helen, you are the best of us,” — Senator Pocock, independent senator

Pocock proposes 5 per cent tax on data centres, saying Labor too starstruck by AI giants

• “What has happened to Helen has made me more determined to stand here today and say what I have to say," Senator Pocock said.” — Senator Pocock, independent senator

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