Tax targets Netflix and other downloading entertainment

NETFLIX lovers are in for some bad news - there is a proposed tax that could see you paying more.

The Australian Retailers Association (ARA) has commended Federal Treasurer, Scott Morrison, on draft laws introduced to Parliament this week to close the loophole which sees digital purchases, including e-books, music, and content streaming services escape tax if purchased from online overseas operators.

The ARA has lead the campaign on tangible and intangible GST collection changes, securing a major victory in August, with confirmation of the removal of the $1000 tax-free threshold on purchases from international retailers from July 2017.

ARA Executive Director, Russell Zimmerman, said the planned changes are necessary to bring purchases of digital goods in line with physical goods from 2017, and will put a stop to the advantage online overseas retailers now enjoy over Australian businesses.

"Mr Morrison's proposal to close the GST loophole that has seen international online operators given a leg up over local Australian players is the final frontier in our fight to maintain a fair an equal business environment for Australian retailers," said Mr Zimmerman.

If the proposed legislation is passed in Parliament, intangible items such as games, music, e-books, video and other content streaming purchased from international e-commerce entities will be subject to the same tax as Australian sold physical or digital goods. The laws would be expected to come into effect from July 2017.

"The issue of international online retailers escaping the payment of taxes has been a huge concern for Australian retailers, and the ARA is overjoyed to see that the Government is finally taking action. If passed, this legislation will finally offer Aussie companies a level playing field on intangible items, with the Government committed to fixing the GST on physical items.

"This change will have the added benefit of funnelling around $350 million in extra revenue into our States and Territories, which can be used to fund crucial services such as teachers, police, and doctors. We hope to see the quick passing of the laws in Parliament and the swift implementation of this sensible law."

Topics:  australian retailers association editors picks federal politics internet netflix tax

Step-father sexually abused daughter for years


He bribed his step-daughter with lollies and chocolate.

Capricornia MP tells Rockhampton MP to quit

LNP candidate Michelle Landry.
Photo Allan Reinikka / The Morning Bulletin

But Mr Byrne said he would not take part in 'political mud-slinging'

'Traumatic': Boy saves litte brother as fire destroys home

Telitha Abbott and Jamee Robson are slowly rebuilding Telitha and her familys lives after a fire tore through their Calliope rental home.

LOCAL mum in tears after fire tore through home.

Local Partners

Isaac charity ball supports youth suicide prevention

MORE than 250 guests helped bring down youth suicide in Isaac at Mayor Anne Baker's Charity Ball proudly supporting youth suicide prevention on Saturday nigh.

Your chance to win

Learn More

Program announced for weekend's film festival

Lead character Frankie in one of the Capricorn Film Festival's short films, Slingshot, to screen this weekend.

Over 20 short films by CQ filmmakers to screen this weekend

Community garden set for Palmwoods

Kay Nixon at the Palmwoods Community Gardens will be hosting a launch day and inviting the ecommunity to come along and sign up.

Parcel of land to supply sustainable gardening for community

Former Split Enz front man Tim Finn finds new niche

Singer Tim Finn has written the music for theatre production Ladies in Black.

Musician finds his way to theatre

Kristie doesn't mind being the third wheel in Survivor final

Kristie Bennett in a scene from Australian Survivor.

SOLO player will take on Survivor's power couple Lee and El tonight.

Scary hoping Posh and Sporty will re-join The Spice Girls

Mel B

Mel B hoping Victoria Beckham, Mel C will re-join The Spice Girls

REVIEW: Michael McIntyre has Brisbane in stitches

Michael McIntyre in a scene from his TV series Michael McIntyre's Comedy Roadshow.

BRITISH comedian is in the country on his Happy and Glorious Tour.

Cliff Richard doesn't need Rod Stewart's help with legal bills

Sir Cliff Richard

"'Don't worry, I'm loaded. I won't keep you to it.' "

Bindi Irwin named in MAXIM HOT 100 list

Wildlife Warrior named among Australia's most beautiful women

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals