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None other than James Packer, son of the late, great anti-tax champion, billionaire Kerry Packer, is warning that AI will decimate tax revenue downunder. Why? It is because Australia depends upon the income tax from workers for the lion’s share of its tax revenue. AI has already started shedding jobs in middle management and the numbers are going to ramp up substantially very soon. The loss of hundreds of thousands of jobs to machines will impact the bottom line severely. Especially, as multinational corporations and rich people avoid paying tax in Australia.
“New data from the Australian Taxation Office show 91 millionaires paid no tax in the financial year 2022-23. They’d claimed $390 million worth of deductions to reduce their tax bills to zero.”
- (https://www.abc.net.au/news/2025-06-27/ato-reveals-90-millionaires-paid-no-tax-in-2022-23/105471332)
Australian Tax Revenue Will Suffer Greatly From AI Job Losses
Company bosses love technology and are embracing the opportunity to invest millions in AI. Let’s face it, many prefer instructing machines over dealing with actual human beings – no pushback and no pretending to like people at work anymore. Productivity figures will improve because sacking workers will make things look more economical going forward. GDP loves this stuff but GDP will not feed your family. The fact that the disruption to actual incomes for millions of Australians will negatively impact demand for everything has not been factored into their equations. The segmented thinking around all this will result in a hell of a lot of collateral damage on a societal level. Plus, AI will decimate tax revenue downunder.
Who Will Pay The Necessary Tax Now That AI Is Costing Those Jobs?
Who is going to pay the necessary tax revenue in Australia to maintain essential government services like health, the military, education and the rest? Big companies are no longer paying their fair share of tax. Donald Trump has assured that via his bullying of global governments everywhere. Trump is running a protection racquet for American multinationals like Google (Alphabet), Amazon, Meta, Microsoft, Apple, Pepsi, News Corp and a slew of others who profit shift to tax free territories in order to avoid paying tax where they trade. Why do you think that Big Tech got behind Trump at the last US presidential election? Elon Musk got on board to maximise and protect his investments and assets. The oligarchs behind Trump are syphoning off wealth globally and giving little back in return.
“Goldman Sachs previously estimated that 300 million jobs could be lost to AI, affecting 25% of the global labor market.”
Smart Phone = Dumb Human
AI is being marketed as the wonder of the age. When you lose your job to AI, I wonder, if you will think it so wonderful? My maxim is smart phone = dumb human. AI accelerates this dumbing down and inability to think for yourself. The more dependent you become on technology the less you are in charge of your own life. Of course, the optimistic entreaty is that you will find other work. Yes, you might be able to deliver pizzas or something else in the gig economy. Congratulations on becoming a digital slave. Are we all going to take this lying down? Apathetic acceptance of a fait accompli?
“To get to this moment, tech companies have been forging a friendly relationship with Trump. The CEOs of Alphabet, Meta, Amazon and Apple donated to the president’s inauguration fund and met with him at his Mar-a-Lago estate in Florida. Sam Altman, the CEO of OpenAI, which makes ChatGPT, has become a close ally of Trump, and Nvidia’s Huang has also cozied up with the president with promises of investing $500bn in AI infrastructure in the US over the next four years.
“The reality is that big tech companies are still spending tens of millions of dollars to curry favor with lawmakers and shape tech legislation,” said Alix Fraser, the vice-president of advocacy for the nonprofit Issue One. “
AI Is Going To F*** You
AI will decimate tax revenue downunder. This is why the Australian government is looking at how they can maintain the necessary tax revenue by other means. New ways of taxing wealth will be required. The increase and expansion to the flat consumption tax is always popular with economists.
“In Australia they are talking about raising the flat consumption tax called the GST. Increasing the GST hurts the working poor more. After 4 years of a cost of living crisis due to high inflation, exacerbated by price gouging by big corporates, and the Reserve Bank steeply raising interest rates the experts think that the poor folk need another kicking. Who do you think copped it in the neck the most over this period? And prices on essentials have not come down, they are merely not rising by so much. Does the federal government really think that those hurting the most financially deserve another price hike on everything? “
AI comes protected via the American tax avoidance racquet of Big Tech and Trump. It is going to seriously mess with our way of life and for what? It is not some panacea but just another marketing push from the digital services takeover of the world. You pay a subscription for everything and own nothing. Welcome to the US masterplan.
Robert Sudha Hamilton is the author of Money Matters and America Matters: Pre-apocalyptic Posts & Essays in the Shadow of Trump.
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