Treasurer, Joe Hockey, foreshadows "Netflix tax" in 2015 budget

Tax will provide a level playing field for Australian digital merchants

Treasurer, Joe Hockey, foreshadows "netflix tax" in tomorrow's budget.

Treasurer, Joe Hockey, foreshadows "netflix tax" in tomorrow's budget.

Treasurer Joe Hockey has confirmed the Federal Government plans to extend the goods and services tax to digital products ahead the 2015 budget.

The so-called "Netflix" tax will target merchants of digital products such as software, streaming services, digital books and music and is projected to reap the government about $350 million over four years.

Hockey said a "tax integrity" measure would ensure that the suppliers of digital products and services into Australia charged the GST on products.

The GST only currently applies to imported physical goods valued at more than $1000.

This threshold will now apply to digital products.

However, the government has opted against lowering the threshold across the board, as it would be to costly to enforce.

The proposed changes to the tax act will target 30 companies and will not be introduced before July 1 this year.

Hockey said the government would consult with business before introducing the new tax.

"One of the things I'm concerned about is unintended consequences, particularly for Australian businesses."

Local companies will now be more competitive on price as they will have a level playing with companies who previously did not have to pay a 10 per cent GST.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags joe hockeyBudget 2015

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?