Publications / Taxation
'Netflix tax' on intangible services confirmed in Federal Budget
13 May 2015
In the Federal Budget presented on 12 May 2015, the Australian Treasurer has confirmed an expansion of GST will be introduced from 1 July 2017. Dubbed the ‘Netflix tax’, the GST will apply to the electronic delivery of digital content such as movies, music and games. It will also include the supply of professional services and consultancy to Australian resident consumers sourced from outside Australia.
In this alert, Partner Mark West discusses the exposure draft legislation released at budget time and the implications of the tax on suppliers. Suppliers are advised to make provision for the GST in contractual arrangements now ahead of its introduction in 2017.
We will continue to provide updates on the tax in due course.
About McCullough Robertson
McCullough Robertson is a leading Australian independent law firm with industry specialists combining legal expertise with deep industry knowledge and foresight. The firm provides innovative, relevant and commercial legal solutions to major corporate, government and high net worth individuals across Australia and internationally. Established in 1926 the firm's major focus areas are the resources (mining and energy), food and agribusiness, technology, telecommunications, health and life sciences, real estate and financial services sectors.