Laws which make digital products purchased overseas subject to GST have been introduced to parliament, as the government looks to create a level playing field between Australian and overseas businesses.
According to The Sydney Morning Herald, the laws, colloquially called the ‘Netflix Tax’, were introduced to parliament yesterday by Treasurer Scott Morrison.
If the laws are passed, it will give the government the power to collect GST on overseas-based products purchased by Australian consumers.
Adding GST to overseas products like Netflix, games, movies and eBooks, is expected to raise $350 million over four years from July 2017.
Australia isn't the only country to be eyeing a 'Netflix Tax'. Parts of Europe and New Zealand have amended taxation laws to include digital products.
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