With the Australian Federal Budget drawing ever near, Aussie gamers may be affected by the “Netflix tax”‘.
The news itself comes confirmed from the Federal Treasurer Joe Hockey, who said at a press conference today that this will be an addition to the current Goods and Services Tax, that was introduced in 2000. “What we’re doing is going to digital providers overseas and saying ‘can you apply the GST to the products you provide into Australia?” he said. “They (the tech companies) are agreeable to it. It’s not their profits (being taxed), it’s a tax collected and they remit it back to the country where that (consumption tax) occurs.”
With the introduction of this new tax, digital services such as Netflix will have an additional 10% added to their current price listing. Other services such as Steam, Origin, Uplay and even Uber rides may also see a tax increase for their services.
GST is estimated to raise over $350 million AUS within the next four years. The Australian Federal budget is set to be discussed tomorrow night, with a draft legislation said to be presented before the House of Representatives. In regards to Federal Opposition views on the matter, the Australian Labor Party hasn’t provided any comments as of yet.