Incase you’ve forgotten, we’re about to cop a new tax that’ll result in you paying more for international digital products like Netflix.
From the 1st of July you can expect to pay up to 10 percent more for digital products or services purchased in Australia from overseas companies. It’s the first time GST will be applied to such purchases.
Most notably, this means your Netflix subscription will cop a hike, but you can also expect to see it applied to Spotify, iTunes and games purchased through platforms like Steam.
“We collect and remit tax wherever we are legally obligated to do so,” a Netflix spokesperson told The Daily Mail. They’re yet to confirm whether they’ll pass on the entire cost of the GST to the consumer or absorb some of it by reducing subscription fees.
Australian users currently pay $8.99 for a basic package, $11.99 for standard and $14.99 for premium.
Companies like Netflix were previously taking advantage of a legal loophole that freed them from collecting GST on digital products and services exported to Australia. The new law closes that loophole and will likely result in you paying more for dat sweet, premium content.
But on a positive note, it’ll help local players like Stan compete with the big boys.
“It ensures Australian businesses selling digital products and services are not disadvantaged relative to overseas businesses that sell equivalent products in Australia,” said Treasurer Scott Morrison when the bill was introduced.
Prepare you wallets, folks.
Source: The New Daily.
Photo: The Simpsons.
