Just when you thought Netflix was cheap, the Government comes along.
Confession I don’t pay much attention to the budget.
But now? Now it’s personal.
Because Treasurer Joe Hockey has confirmed that there is going to be a tax on Netflix.
A TAX ON NETFLIX? OH WHAT A SHOCK. AUSTRALIA MAKING SOMETHING MORE EXPENSIVE.
It’s not just Netflix. The Government is cementing it’s role as the fun police, adding a tax to any digital products. You know, just in case our country wasn’t expensive enough as it is.
The newest TV streaming service, Netflix, landed on our shores from the US a few months ago and we welcomed it with open arms. Finally a program that encourages us not to pirate movies and illegally download TV shows. An affordable entertainment option for families. All the cheap, glorious TV on demand that you could ever want.
But this digital dream is now going to cost 10% more because the Government saw people having fun and decided they could probably make some money off it has decided to “level the playing field”.
Level the playing field? Put that energy into chasing the multinationals that avoid paying billions in tax – not a GST that means we’re all paying more for really, really, really fun stuff like Netflix.
Australia is already one of the most expensive countries in the world to live. And it’s wearing thin.
The Treasurer said GST on digital products would ensure “a level playing field” for suppliers of digital products and services in Australia.
“It is plainly unfair that a supplier of digital products in Australia has to charge GST and an off-shore supplier does not,” he says.
I get that. I do. But life’s not fair, Joe.
It’s called a free market. Competition is healthy. And maybe if the Australian Government didn’t tax and regulate the bejeezus out of every supplier in Australia, there would be more of it on our shores.
So the party is over. You”ll now pay more for music, movies, software and ebooks purchased overseas. The Government’s decision will see companies like Netflix, Uber, and Steam games to hike their prices by 10 per cent to “level the playing field”.
It’s not level.
The playing field is a f**king uphill climb these days and this is yet another thing we’ve paying more for.
I know it’s nuanced and complicated, Joe. I don’t know much about tax. I know I didn’t care about the budget until today.
But I do know one thing: Just stop making everything cost more.
Want more about expensive Australia, Netflix and the budget?
Australia is now the most expensive country in the world.
Top Comments
The scary thing about this is the 'digital' products. How far does this extend? Will it affect knitting patterns bought from America online (they are a digital product)? Is there a threshold for small business? Who will they collect the GST from, the small business owner in America? The buyer? How will the Government actually govern this without breaching privacy? There is a similar problem in the EU with their VAT mess. Oh I could go on.... For days about how this opens up a huge can of worms.
It looks almost impossible that Netflix Australia will offer its users a work around when it comes to avoiding GST in Australia. Thus, the only solution to avoid the Netflix Tax is PureVPN.