Australian Government Considering Implementing GST On Overseas Purchases, Netflix Subscriptions

Gerry Harvey and his band of merry retailers are crowing today: the Federal Government is considering charging GST on online purchases under $1000, which will include subscriptions to services like Netflix. It’s being branded the “Netflix Tax”, and it means you’re probably about to start paying more for your tech.

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Fairfax reports this morning that the next Federal Budget may include a lowering of the GST threshold for purchases made online under $1000, which means that all that sweet gear you ship to our shores from Amazon and the like will soon attract a 10 per cent bill.

What’s interesting is that it’s being dubbed “the Netflix tax”, meaning that online subscription services would also be targeted. There’s even a suggestion that Uber rides could also be subjected to new taxes under the new budget measures.

You may remember that a consortium of retailers, headed up by mouthpiece Gerry Harvey, campaigned for online purchases of under $1000 to be subjected to the GST, but a report from the Productivity Commission found at the time it would cost more money to collect the taxes than it would earn.

The National Retailers Association also warned that thousands of jobs could be lost if the GST wasn’t applied to these purchases at the time.

Will a GST on Netflix, Uber and other online purchases get you off-side? Tell us in the comments!


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