Updated Sep 9, 2026 – 12.04pm, first published at 7.56amWashington | A powerful American software lobby group has urged Australia to overturn its newest tax hit on digital giants, warning that it may drive away foreign investors, as the Albanese government’s tightening regulatory grip on big tech threatens to spark a showdown with Washington.Software and Information Industry Association vice president Morten Skroejer said a ruling by the Australian Taxation Office, first revealed by The Australian Financial Review on Monday, to treat fees paid to streaming and cloud computing providers such as Apple Music, Netflix and Amazon as royalties contradicted the OECD’s “model tax convention” followed by the US and others.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
‘A dramatic departure from tax norms’: PM warned on big tech royalties
Canberra could be headed to a showdown with Washington over a suite of measures designed to rein in mainly US-based social media and cloud computing platforms.












