Australia to look at "netflix" tax, GST applied to entertainment purchases

[mr moose]

The Australian government has suggested that with falling tax revenue, the GST be applied to online purchases of music, movies and books.

 

http://www.theaustralian.com.au/national-affairs/labor-open-to-netflix-tax-says-bill-shorten/story-fn59niix-1227298193368
 

 

Treasurer Joe Hockey revealed the new plan yesterday after telling state treasurers of his fears that tax revenue was being lost from the soaring purchases from Netflix and other online entertainment companies.

 

 

Given that Labor is open to the plan and has shown no opposition insinuates that this is a serious issue and something that can't just be dismissed for political points.

To me this reflects some of the effects that moving to a digital based distribution system has had on the economy.  When you buy a cd, dvd, bluray or book from a store there is a component of tax that has gone to the government, now with people taking up netflix that money (including the stores own profit) is now almost solely going overseas.

 

I will have an issue if it makes it more expensive to buy online than it does to buy in store, but if it is the same or cheaper then I don't see this as a bad thing,  The country doesn't run on happy feelings. 

 

Your thoughts?

[VirtualR3ality]

They want me to subscribe to read the article  

[Trik'Stari]

Here's a thought, instead of increasing taxes to cover the budget, cut out the unnecessary bullshit from the budget, slash the politicians salaries, and then maybe try balancing the budget.

[Kyuubixchidori]

people are going to get mad because it costs more, but no shit, why should online things not be taxed? its difficult here in the states, because you rarely buy something in state, and each has their own tax rate.

 

but countries where its the same rate everywhere? yeah there should be tax. theres zero reason there should be no tax 

[mr moose]

@VirtualR3ality

 

Google this:

 

Labor open to Netflix tax says Bill Shorten

 

it should come up as the first result and click the link it will open then.

[Kyuubixchidori]

Here's a thought, instead of increasing taxes to cover the budget, cut out the unnecessary bullshit from the budget, slash the politicians salaries, and then maybe try balancing the budget.

fun fact, in detroit, it costs more for the city to process a parking ticket then they make from the ticket. it literally costs the city money to ticket people. thats how inefficient it is. 

 

the problem with cutting unecessary bullshit, is it all goes somewhere. where ever your going to cut your going to make people mad. thats lost voters. no politician wants to do that. whats sad is politicians cant really win. if they do whats popular, they fuck over the future. if they cut spending, it hurts their popularity, and they never get voted in again. 

[VirtualR3ality]

See what people don't understand is why taxes are important, before I begin my rant I would like to state that I live in Canada and that I will be talking from my countries point of view.

 

People don't understand that without taxes the country can not pay for the infrastructure it has setup. A government can not maintain the roads, healthcare, education as well as all the policies and agencies that are protecting us. While I do agree with Trik Stari that bullshit should be slashed and politicians salaries should be decreased regardless I still think that taxing is a needed thing. However I only think that if your country puts it back into the country. 

 

As well I think it's fine that they tax online entertainment, it only make sense. You pay a bit more but the money is going back to you if you think about it logically. The money the government gets will be going into programs and infrastructure you use or may use in the future. However if the government is pulling fast ones on the people and pocketing the money then I am against all taxation.

[mr moose]

 

the problem with cutting unecessary bullshit, is it all goes somewhere. where ever your going to cut your going to make people mad. thats lost voters. no politician wants to do that. whats sad is politicians cant really win. if they do whats popular, they fuck over the future. if they cut spending, it hurts their popularity, and they never get voted in again. 

QFT,  And with the internet giving everyone instant information regardless of its accuracy it is so much harder for a politician to do the right thing.  It's almost like society is pushing them further into corruption because the honest path gets them voted out.

[Sauron]

See what people don't understand is why taxes are important, before I begin my rant I would like to state that I live in Canada and that I will be talking from my countries point of view.

 

People don't understand that without taxes the country can not pay for the infrastructure it has setup. A government can not maintain the roads, healthcare, education as well as all the policies and agencies that are protecting us. While I do agree with Trik Stari that bullshit should be slashed and politicians salaries should be decreased regardless I still think that taxing is a needed thing. However I only think that if your country puts it back into the country. 

 

As well I think it's fine that they tax online entertainment, it only make sense. You pay a bit more but the money is going back to you if you think about it logically. The money the government gets will be going into programs and infrastructure you use or may use in the future. However if the government is pulling fast ones on the people and pocketing the money then I am against all taxation.

 

But the government didn't really pay for anything to let you watch netflix... you already pay your isp (part of that goes in taxes already), the government does nothing to allow you to connect to netflix. Need money for roads? Tax fuel. Need money for schools? Tax pupils. What is the purpose of this specific tax?

[Trik'Stari]

fun fact, in detroit, it costs more for the city to process a parking ticket then they make from the ticket. it literally costs the city money to ticket people. thats how inefficient it is. 

 

the problem with cutting unecessary bullshit, is it all goes somewhere. where ever your going to cut your going to make people mad. thats lost voters. no politician wants to do that. whats sad is politicians cant really win. if they do whats popular, they fuck over the future. if they cut spending, it hurts their popularity, and they never get voted in again. 

There's plenty of ways to cut their budgets down without losing votes, and even if they do, there's this thing we used to have, called political discourse. You know, actual discussion and reasoning rather than just slogans and smear campaigns.

 

The level of sheer idiocy by the general populations of our countries, and our politicians, makes me want to weep for the future of humanity. It will only lead to one thing.

[mr moose]

But the government didn't really pay for anything to let you watch netflix... you already pay your isp (part of that goes in taxes already), the government does nothing to allow you to connect to netflix. Need money for roads? Tax fuel. Need money for schools? Tax pupils. What is the purpose of this specific tax?

This is why:

 

Given that Labor is open to the plan and has shown no opposition insinuates that this is a serious issue and something that can't just be dismissed for political points.

To me this reflects some of the effects that moving to a digital based distribution system has had on the economy.  When you buy a cd, dvd, bluray or book from a store there is a component of tax that has gone to the government, now with people taking up netflix that money (including the stores own profit) is now almost solely going overseas.

 

I will have an issue if it makes it more expensive to buy online than it does to buy in store, but if it is the same or cheaper then I don't see this as a bad thing,  The country doesn't run on happy feelings. 

 

 

 

They are loosing revenue because people are shifting from buying movies and music on taxed physical media to untaxed digital copies.  It is not so much the creation of a new tax for more $$, just changing the legislation to bring digital content inline with physical media and retain current tax revenue.

[JAKEBAB]

Wow wtf!!! we already pay way more than we should! mr moose there is no way this won't make prices go up, we are known to be the country that get's completely screwed over just because

[mr moose]

Wow wtf!!! we already pay way more than we should! mr moose there is no way this won't make prices go up, we are known to be the country that get's completely screwed over just because

 

Absolutely it'll make prices go up.  Unfortunately if you've seen the latest treasury report we are scrapping the bottom of the barrel for tax revenue.  Which means either spending has to be cut or taxes have to go up.   To be perfectly honest I'd rather they taxed unnecessary things like movies and music than essential items like food, petrol power etc, or worse, less hospital beds, and less subsidies on essential medicines.

[JAKEBAB]

Absolutely it'll make prices go up.  Unfortunately if you've seen the latest treasury report we are scrapping the bottom of the barrel for tax revenue.  Which means either spending has to be cut or taxes have to go up.   To be perfectly honest I'd rather they taxed unnecessary things like movies and music than essential items like food, petrol power etc, or worse, less hospital beds, and less subsidies on essential medicines.

True but maybe they should focus on taxing more while keeping prices the same since we already pay too much, then maybe we would be equal to the US prices just with a higher tax. 

 

This is going to increase pirating even more aswell...

[mr moose]

True but maybe they should focus on taxing more while keeping prices the same since we already pay too much, then maybe we would be equal to the US prices just with a higher tax. 

 

This is going to increase pirating even more aswell...

I'm not too sure what more there is to tax, nearly everything is taxed already.   And yes I can see it increasing piracy as well. 

[Thought]

Well they aren't really loosing revenue if they didn't receive it in the first place? This is a lost opportunity, not lost revenue.

[JAKEBAB]

I'm not too sure what more there is to tax, nearly everything is taxed already.   And yes I can see it increasing piracy as well. 

Sorry i mean't do this tax but don't allow companies to increase prices due to the tax.

[mr moose]

Sorry i mean't do this tax but don't allow companies to increase prices due to the tax.

 

That'll never happen.  Forcing taxes on a company then not allowing them to pass those on is only a step away from oppressive dictatorship.

[Dabombinable]

*sigh* The retards still don't realize that they are the problem by the sheer fact that they have insane salaries and get a pension that sets them up for life after 3 years in office. I am honestly over the current government and their BS. Its all about votes and how much money is in their pocket now.

[JAKEBAB]

That'll never happen.  Forcing taxes on a company then not allowing them to pass those on is only a step away from oppressive dictatorship.

Why should consumer's have to pay more? it's already hard enough as it is, these companies have millions and afaik are raising the price here for no reason compared to the US.

[mr moose]

Why should consumer's have to pay more? it's already hard enough as it is, these companies have millions and afaik are raising the price here for no reason compared to the US.

 

No one wants to pay more, but that's just how the economy works.  The governments total income has to be the same or a little more than its expenditure. the government only gets revenue from taxes and levies and as such when consumers moves from a taxed product to one that isn't the government loses revenue.  All they are doing is extending the same tax for the same product to the new distribution method.  

 

Technically we aren't being hit with a new tax, we where just lucky enough to dodge one for a while.  The GST was always supposed to be on any non essential good or service, the US does not have a GST that is why they are not taxed in that manner, they still operate under the older sales tax system.

[Ertman]

But the government didn't really pay for anything to let you watch netflix... you already pay your isp (part of that goes in taxes already), the government does nothing to allow you to connect to netflix. Need money for roads? Tax fuel. Need money for schools? Tax pupils. What is the purpose of this specific tax?

GST is a goods and service tax, that actually answers both your statement and your last question.

Also, infrastructure is what the government provides. It doesn't have to be direct, people benefit from indirect services and infrastructure all the time.

[mr moose]

GST is a goods and service tax, that actually answers both your statement and your last question.

Also, infrastructure is what the government provides. It doesn't have to be direct, people benefit from indirect services and infrastructure all the time.

 

Like the public transport, when I drive into the city it doesn't take me three days because the government runs public transport that keeps people of the roads.

Or like the fact we have local tv content because the government has put aside money for local jobs in entertainment.

[Ertman]

Like the public transport, when I drive into the city it doesn't take me three days because the government runs public transport that keeps people of the roads.

Or like the fact we have local tv content because the government has put aside money for local jobs in entertainment.

 

Yes.

 

What people also don't realize is more indirect benefits one receives as well. For example, road infrastructure, a business (small or large) owner benefits from not just their particular route to work or the surrounding road of their business, but also the roads travelled by customers, suppliers and employees.

[ofr057]

I have to agree with you @mr moose it was in inevitable for online tax to happen, I hope it doesnt hurt to much when buying stuff off steam.

 

The other thing I'm wondering do i pay tax if I buy a game for a  friend in the states? practically i would guess so, but my logic thinks this tax shouldnt apply until the digital item is in australia.

 

I think the goverment will also look at lowering the tax free gap in import tax as where slowly moving away from production and towards services.