Adobe Will Charge GST On Creative Cloud In Australia From Next Month

Adobe Will Charge GST On Creative Cloud In Australia From Next Month

Digital media giant Adobe — which already has its hooks into you with the Creative Cloud suite of internet-connected, monthly subscription-based software like Photoshop and Illustrator — is about to add GST to its existing prices. That means the cost of your subscription is about to take a hefty jump.

Adobe customers in Australia are receiving an email telling them that from the start of next month, Adobe will add an additional 10 per cent charge to the existing price of its monthly or annual software subscriptions. The information is also available on Adobe’s website.

“Thank you for being a valued Adobe customer. We wanted to share an important change to the tax you currently pay on your Adobe products and services.

“Starting December 1, 2016, Adobe will begin to charge 10% GST on all goods and services to our customers in Australia. Learn more. Your next bill, on or after this date, will reflect the new tax rate. Note that this change does not affect the base price of your Adobe products.”

In September, Gizmodo reported that the Australian government would gain the power to block online stores that did not charge GST — even if those stores were hosted overseas or by a company without an Australian presence — once they reach an annual turnover of $75,000. That push doesn’t come into effect until 1 July 2017, though, and even then is up to the discretion of the government of the time to enforce.

Adobe’s Creative Cloud suite of digital media editing software starts at $11.99 per month before GST for Aussie customers, for a package that includes the popular combo of Photoshop CC and Lightroom CC. Creative Cloud access to a single piece of software — like Photoshop or Lightroom or After Effects — costs $22.99 per month. The monthly cost of the entire Creative Cloud suite is $57.99 per month.

The addition of GST will bump those prices to $13.18, $25.28, and $63.78 — an increase of $1.19, $2.29 and $5.79 respectively. We’ve contacted Adobe for comment. [Adobe]