There are several new technologies that will change the way a business operates in the next 5 to 10 years in terms of supply mechanisms, methods of resourcing, manufacturing, distribution, and delivery of goods and services. New technology includes the enhanced use of data and technology such as block-chain, quantum computing, automation, robotics, and so on. This will also include the ways in which businesses would capture store and process financial information. There is an urgent need to amend theA New Tax System (Goods and Services Tax) Act 1999(Cth) to clarify the tax treatment of digital measures and new technology. This is particularly so given the Federal Budget deficit.

Required:In relation to the tax policy issue shown above, answer the following questions.

1. Who are the winners and losers in relation to this tax policy, i.e. what are its pros and cons from the point of view of the key stakeholders?
2. Assuming that you work for an accounting/tax practice, what has been the or would impact your firm and its clients where any component of this tax policy has or will become law?