The federal government is proposing a GST on online services and products under $1000. The tax would apply a 10 per cent GST charge on ‘intangibles’ such as virtual books, movies, software and ebooks.
Fairfax Media reports that the ‘Netflix Tax’ is back on the cards for this year’s Budget. Despite rumours that the tax would be dropped because it would piss off ordinary voters who are looking to get cheap, legal content.
Currently, the Government doesn’t collect GST on overseas purchases from sites like ASOS, Netflix and Amazon. In 2012, it was reported that an estimated $1 billion a year is lost in revenue because GST isn’t being applied to services sold in Australia by overseas companies.
The cheapest Netflix package is $8.99 a month, making it a cheaper package than Australian streaming competitors who have to pay GST such as Stan, Presto and Quickflix. However the proposal would not affect iTunes downloads, Apple already pays GST on Australian sales.
Federal treasurer Joe Hockey has previously said that a Netflix tax is a necessary move for the Coalition. “I see those things as integrity measures for the tax base, not the broadening of the GST or an increase of the GST.”
“The states agreed in principle that we should move in that regard. I have offered to work as quickly as possible with them to introduce legislation to address that in relation to intangibles.”
It’s unclear if this tax would apply to other overseas owned companies which operate in Australia, like Uber and Airbnb.
Medallia has appointed Heather Paterson as its new ANZ country manager to drive further growth across Australia and New Zealand. With a strong sales performance and leadership background, Paterson joins Medallia as ANZ country manager following more than seven years with leading SaaS financial technology provider, Intralinks, where she was most recently director for Asia […]
Spikes Asia today announces that the 2021 awards will take place in February, bringing them forward to the first quarter of the year. Judging for the Spikes Asia Awards, the region’s most prestigious creative branded communications accolade, as well as the Tangrams Awards and Young Spikes competitions will all take place in February 2021. In […]
Following a rigorous round of online judging by 133 industry experts, The Communications Council today announced that 88 finalists from 24 agencies on behalf of 36 clients have made it into Round Two of the Australian Effie Awards. Finalists will now compete for Effies, Australia’s only awards based on proven advertising effectiveness – across 26 […]
Integral Ad Science (IAS) today announced the launch of “Channel Science”, an industry-leading partnership between Channel Factory and IAS. The Channel Science solution helps advertisers to leverage both companies’ technologies through a single product to ensure their YouTube campaigns are brand-safe, brand-suitable, and performance-optimized. More than ever before, advertisers are searching for ways to streamline their media buying and improve […]
WPP AUNZ has launched its inaugural podcast series, led by WPP AUNZ Chief Strategy Officer, Rose Herceg (pictured). The podcast series will focus on the company’s recent thought leadership study: Secrets & Lies Chapter 4, Humanity & the Machine. Aired over the next few weeks, each discussion will take a deep dive into exploring the role […]
Westpac Group today announced it has partnered with Verizon Media’s Omnichannel DSP across its entire brand portfolio including Westpac Bank, St George Bank, Bank of Melbourne and Bank of South Australia. The new partnership gives Westpac Group access to Verizon Media’s end-to-end strategic marketing and planning capabilities including: first-party data based audience insights; full-service omnichannel […]
Network 10 is set to undergo a massive restructure, leaving a number of high-profile journalists out of a job, including Kerri-Anne Kennerley, Natarsha Belling and Tim Bailey, B&T understands. As first reported on The Sydney Morning Herald, the restructure was announced to staff on Tuesday. As part of the restructuring, the presentation of the weekday […]