“Netflix Tax” Reportedly On Government’s Radar
Fairfax Media has reported the government is looking to impose the tax on services such as Netflix under new rules set to be included in next week’s budget, with the GST to be applied to “intangibles”, such as software, music, videos and downloaded books.
Retailers, including Harvey Norman and Myer, have long pushed for the closing of a GST “loophole”, whereby goods bought from overseas valued at less than $1,000 do not attract GST, with the move potentially a precursor to further changes.
Fairfax has reported that assistant treasurer Josh Frydenberg will attempt to convince state treasurers to extend the GST to low-value parcels following the budget.
The Australian National Retailers Association (ANRA) has stated retailers are encouraged by today’s reports.
ANRA CEO Anna McPhee stated while retailers are encouraged by the government’s “first steps”, that “intangibles are just one aspect and goods also need to be acted on to address tax integrity fully”.
“We must strengthen the integrity of Australia’s tax system and ensure similar types of goods and services consumed domestically are taxed in the same way, no matter how that purchase occurs,” McPhee commented.
“GST on music, books and video games is not a new tax, and without action what is currently $1 billion in foregone revenue from goods and services will continue to rise as global providers of products and services focus more on marketing in Australia.”