From The New Daily:
Australian subscribers to Netflix will pay up to 10 per cent more for the streaming service by the end of the week.
From July 1, the 10 per cent goods and services tax (GST) will be applied for the first time to digital products and services purchased in Australia from overseas companies.
Netflix confirmed to The New Daily in May that it would add the charge…
The law will close a loophole that meant global companies did not have to collect GST on services and digital products they exported to Australia.
It will also help local companies like Stan compete with US giants like Netflix.
“It ensures Australian businesses selling digital products and services are not disadvantaged relative to overseas businesses that sell equivalent products in Australia,” Treasurer Scott Morrison told Parliament when he first introduced the bill…
From July 1, the 10 per cent GST will be broadened to all digital products, such as smartphone apps, songs, podcasts, e-books and games purchased by Australians from overseas.
It will also apply to imported services, such as consultancy and professional services performed offshore for Australian customers.
This is a commonsense measure that will not only bolster Budget revenue but also improve competitive neutrality of the tax system. There really is no economic justification for foreign companies selling goods and services into Australia paying less taxes than their domestic competitors.
