Hockey hints at GST clampdown on Netflix
The Australian Government is set to bow to pressure from local media organisations and impose stricter tax rules on Netflix and other overseas providers.
According to the Australian Financial Review, treasurer Joe Hockey has flagged that movies and music downloaded from overseas providers will be subjected to GST after a widespread agreement at a federal and state level to strengthen the “integrity” of the tax.
There are also moves to apply GST to goods imported online, which are valued at less than $1000 and are currently free of the tax.
“I see this as an integrity measure, not a broadening of the GST of a deepening of the GST,” Hockey said.
The apparent move to clamp down on overseas providers followed tense exchanges at yesterday’s Senate inquiry into corporate tax avoidance where News Corp chief executive Julian Clarke claimed Google and Netflix were creating an “unlevel playing field that we feel passionate about”.
Asked to give his views on the GST tax arrangements of its overseas competitors, Clarke said: “Netflix have just come into this country. They have been able to price themselves below the company that we have, which is Presto. But it’s not just us – it’s also the Fairfax joint venture with Nine (Stan).
“We would be looking to Parliament to fix that problem. If the GST isn’t applied here and it allows a foreign company to come here and have a lower operating cost base then clearly it’s not a level playing field.”
…..another reason to torrent!!!!!
Aaaarrrrrrrr!
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When Rupert barks, Joe jumps. Didn’t take long — 24 hours.
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Hockey won’t go after his tax-evading corporate mates yet he’s happy to broaden the GST to online goods and services. Tax the people, don’t touch the rich. Call it what you will Hockey but it is an increase of the GST.
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But as the supply occurs outside of Australia GST will not be payable.
All of the major PSPs and operators have had individual tax rulings (inc Telstra) to this effect. Netflix will be no different. Supply will be deemed to have occurred in Ireland or Burundi or somewhere and she’s gst free!
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Yep, this’ll just push even more people to torrent content they were willing to pay for via Netflix.
Apply all the bloated nonsense digital tax you want to Netflix, Joe Hockey; nobody’s going to suddenly give a shit about Presto or any other of the disgustingly expensive local providers as a result.
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But he won’t touch News Corp.
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Yo. Blackbeard.
Your pirate banter is neither funny, nor clever. Joke all you like about getting content for ‘free’ via torrenting, but you fail to consider and acknowledge the real jobs and contributions content makers give to audiences when they produce and deliver films and TV shows.
A few extra dollars in GST isn’t going to break the bank. Honestly, you spend more on coffee each morning. Quit the BS and *respect* your fellow content creators…Or step and let the market take your marketing strategies or creative goods from your agency, studio or office for the sweet price of Zero.
Sound appealing? Didn’t think so.
The GST push has bigger picture implications, so it will be interesting to see how this pans out for these new global players.
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^^^^^ Jeez who called the fun police? ^^^^^
I agree with Blackbeard….. torrent on until it becomes as cheap and accessible as the US!
Feel free to come to my agency and steal my content… its grade A stuff, the world should see it.
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Apple itunes already applies GST to all digital purchases and rentals, I don’t think this is going to be the Gold mine the Government thinks it will be.
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@Importer
Depends on how you classify supply – the supply of actual ‘goods’ comes out of a Sydney data centre.
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Look at all the pathetic trolls who steal films via torrent all because they don’t want to pay another 50 cents. I dread to know what live they lead because it win;t a productive or contributing to society at all.
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Hi Daniel,
I’m an Account Director for a major agency and lead a comfortable life that also happens to incorporate a little copyright infringement….. How about yourself?
Thanks
Dr Zaius
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I for one think that this is a great idea.
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@dr zaius. I bet you steal the stationery as well.
The fact you don’t see the problem, is the problem.
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People who download movie/tv shows and music for free are pirates!
Just Saying
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Dr Zaius
Would that account happen to be the ‘Human Round Up and Capture Committee’?
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@hook this. I don’t torrent, but I know that it happens, so I actually find Blackbeard the torrent pirate’s posts funny.
My view is that the “shipping” costs that were levied against sending cargo across dangerous seas in sailing ships in the 1800s no longer applies when digital goods are downloaded from a satellite or server. So, Aussies paying extra just because we’re Australia and we are “far away” and can afford to pay extra, annoys me.
FFS, will a company just make content available quickly, at the global price and on devices the consumer wants to use. It can’t be that hard……
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The overall ignorance of commerce is palpable. Something that costs $10USD is the equivalent of $13.77 yet you expect to get it for $10AUD or free.
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