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Goods and Services Tax

2 min read

The Government intends to extend the application of GST to cross border supplies of digital products and services imported by Australian consumers (such as a Netflix Australia subscription).

Under the current GST law, these imports are not subject to GST.  According to the Government, this places domestic businesses, which generally have to remit GST on the digital products and services they provide, at a tax disadvantage compared to foreign businesses.

The proposed measure will apply from 1 July 2017.

Note:  This change will require the unanimous agreement of the States and Territories prior to the enactment of legislation.

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