Australia Eyes “Netflix Tax”

April 10, 2015 Taxation in Australia

CANBERRA – Downloads and streaming services in Australia will become more expensive if the government implements the proposed tax on intangible services.

On April 10th the government of Australia proposed a reform of the legislation regarding GST in order to include intangible services.

Under the reformed tax popular services such as Netflix, Uber and iTunes, and subsequently the tax has come to be dubbed the “Netflix Tax”.

The Treasurer of Australia Joe Hockey explained that the expansion of the GST is intended to be an “integrity” measure, as nature of the intangible services in question was not considered at the time when the GST system was first planned.

It was also noted that new legislative reforms will also be enacted to levy GST on overseas purchases valued at less than AUD 1 000, as previously such purchases would not have faced GST, an issue which significant controversy among local retailers.

Photo By: ozcast