Got an email from Netflix that the monthly sub is going up by 20% due to a new tax.
I've been out of the country for almost 2 months, what tax are they talking about?
For digital services, just like other services, the government is now asking for them to collect 10% GST. Netflix like some others are seeing this as time for a cash grab.
Enforcement of course is the tricky thing. Easier with businesses who have an actual local presence.
The plan of course is also to apply it to physical goods too, which is even harder. And I imagine it will either only apply to a subset of businesses (such as Amazon) or you'll start seeing business just not shipping to Australia as its too much hassle. You might anyway. I know Ebay has already bee threatening to not allow Australian ebayers to buy things from ebayers outside Australia as Ebay is being asked to collect GST even though they are not buying or selling anything and Australia Post has whinged enough that they don't want to have to collect GST from buyers. That's actually how I think it should work with goods so as to not discourage retailers from selling to Australians.
Ebay actually is an interesting case, as you have competitors like Gumtree who aren't involved in transactions at all, they work more like ye olde newspaper classifieds add.