The Taxpayers Union argues implementing the app tax will hurt both customers and providers

The Government has made an about-turn on its pre-election promise, to scrap the new tax on digital platforms to charge GST on any income.

Currently, Airbnb hosts and Uber drivers have to pay GST, but only if they make more than 60-thousand-dollars in annual revenue.

Taxpayers' Union campaigns Manager Connor Molloy says this doesn't help anyone involved.

He says people who aren't mobile enough to use public transport will be hurt by the tax on Uber.

Molloy says families who want to get away and stay in an AirBNB, will also be paying more.