"Netflix Tax" Confirmed For Australia - Expect 10% Price Rise on Digital Goods

[Trunkage]

Typical conservative taxation policy. Abbott/Hockey are almost guaranteed to lose the next election, it's really a question of whether or not Labor will have the spine to axe it.

Of course they wont axe it, Australia's political system is a piece of shit because it doesnt matter if you pick Labor or Liberal, they'll both fuck you over in the same way, its just the choice of who you want to be ramming into your anus.

Theres no choice, at least not a real one, Labor and Liberal argue only over the most trivial shit. Need I remind you that Labor voted for the metadata laws as well. If thats not the biggest reason for why every politician in this country needs to be pushed into the desert then I dont know what is.

I like to say that in Australia we dont have conservatives or liberals, we have assholes, and god damn it if they dont keep proving me right.

As previously stated, this tax is just making the system more fair, especially for local producers. Without this, things will lead to more international business beating out the local. Which will lead to greater price because, as all ready stated, their policy is "Not America? Well screw 'em." If you want locals to compete with the internationals, then this is necessary.

I'm with Bernzz and RicoADF. When will our government fight for consumers?

 

[Somekindofgold]

As previously stated, this tax is just making the system more fair, especially for local producers. Without this, things will lead to more international business beating out the local. Which will lead to greater price because, as all ready stated, their policy is "Not America? Well screw 'em." If you want locals to compete with the internationals, then this is necessary.

I'm with Bernzz and RicoADF. When will our government fight for consumers?

Argue about how necessary it is all you want, not going to stop me and everyone else who is sick of being charged more just resorting to piracy. Rent, food, fuel, entertainment, its all just getting to the point where something is going to snap and a new tax that may be absorbed (naive optimism at its finest, they'll take the opportunity to hike the prices and then retail follows) even if it is 'fair' is just going to push more people into alternative, far cheaper options.

If the Government wanted to fight for the consumers they'd start addressing why companies get to charge so much extra here when, especially in the age of digital distribution, things like import costs and manufacture costs are not an issue anymore before they started adding more taxes.

 

[Thaluikhain]

Eh, the GST was supposed to be on everything except for essentials (this doesn't include tampons). It should have applied to this ages ago, it's an oversight being corrected.

Now, there are arguments to be made about high prices as it is, and piracy, but those are other issues.

 

[infohippie]

The GST is exactly the kind of regressive tax we shouldn't have in the first place. It hits you harder as a percentage of your spendable income the poorer you are.

 

[Adam Jensen_v1legacy]

It would have been nice if, instead of putting this 10% tax on digital goods that affects everyone, maybe close that loophole that lets big companies pay significantly less tax than they should.

It's not really a loophole if it's intentional.

 

[alj]

Whist this is very bad for consumers, and will set digital distribution back ( as that extra 10% was already there but the distributor/publisher took it). I think its totally fair that tax should apply to a digital good as well as a physical one.

The problem is the crazy base price for stuff in AUS ( and Europe) for digital goods vs the US, just look at the differences in steam pricing of US vs UK vs AUS.

https://www.steamprices.com/au/topripoffs
https://www.steamprices.com/uk/topripoffs

Thats insane!

So a fix to a problem looks bad because your already getting screwed over.

 

[RJ 17]

I'd say South Park's "Crying Koala" pic is a very nice way to sum this up. Nice job with the thumbnail. :3

 

[Arnoxthe1]

This reminds me of a wonderful Penny Arcade comic I read somewhat recently...

 

[Dust902]

If some of you guys actually read the terms and conditions of these services, you would know that most already do. Apple, GOG, Blizzard, Nintendo, Microsoft, Sony and if I read the legal jargon correctly Riot games already include and charge GST. As for Valve, they already have to do it in the EU for the VAT so it would be nothing for them to apply whatever they use for that to Australians. Yes, having prices rise is a bad thing but it will only effect a few services that don't charge it, like Netflix. Even then it's an increase of about AU$1. If you're looking for something to get mad about, how about the fact that they are cutting benefits for stay at home parents if favour of childcare subsidies.

Last thing to consider, I've checked and I've seen no evidence that this will apply to physical goods as it makes no mention of the GST import goods limit which for those of you playing at home is still sitting at AU$1000.

All I'm saying is don't lose your heads.

Disclosure: I'm not a fan of either Party. Abbott is an idiot. Shorten is ineffectual. Just thought I'd get this in before anyone says anything.

 

[Grouchy Imp_v1legacy]

Ah, this is clearly to cover all the shipping and distribution costs. Fair enough. -_-

 

[shrekfan246]

I just hope this doesn't make everyone turn around and look at the US and say, "Oh hey, they're not charging tax on digital goods either. We need to get on that!" One of the biggest benefits of Steam or GOG et al is the fact that with the price, what you see is what you get. Plus, the states don't have a unified tax %, so I imagine those of us with lower sales tax would end up getting screwed and slapped with a higher one than our state actually has anyway...

Yaaaay, digital future.

Sorry to hear this, Aussies. Maybe one day you guys won't be charged the Australia tax and have to pay double what we do for games if you don't shop around.

 

[Aeshi]

That site/link seems to be broken.

EDIT: Okay it's not broken, just horribly optimized.

 

[Baresark]

I remember when Australia used to be called 'the lucky country', as is it's just a whole where people dig holes and go to die.

I think I'll join my sister in the states eventually, just sort out that whole, 110% more likely chance of getting shot and I'll be more interested.

The whole 110% more likely to get shot still leaves the odds so statistically small that you can't really comprehend them.

OT: I love politicians. It's not fair that these people aren't being charged taxes and these other people are. THEY ALL NEED TO PAY MORE TAXES!

I live in New Jersey. Call me biased (as I am as is every person who has ever lived), but it always seems to me instead of finding new things to tax they should try to learn to spend their money better. In New Jersey, our shitty legislators purposely stopped working on the states bridges to try and strong arm the people into allowing them to increase the gas tax. Forget that they empty the transportation trust fund every year, a good portion of which does not go to the roads. So, I'm always probably gonna be ready for ratty politicians to do what's good for them and not what's good for the average person.

 

[ritchards]

And this is likely to flow over to New Zealand...only here, it's a 15% hike!

 

[Shamanic Rhythm]

Do you want piracy? Because this is how you get piracy...

By applying the tax that applies to everything else? Sorry but there's no way people can claim this isn't fair. Digital goods have avoided tax for years, this was bound to happen. As Steve said in the report, since most companies already charge full price they will just obsorb the cost as it was already apart of the price for physical goods. Companies just pocketed the difference previously.

Oh good. A 10% price hike.

Because I wasn't already paying enough, given we pay in USD and sometimes our price in USD is higher than the American store.
And conversion from AUD to USD means we pay more ANYWAY.
So yeah, we already get two price hikes. Why not a third for the crime of being born here?
I wouldn't mind the GST if prices for games weren't already exorbitant.

This is the real issue, steam has a funked up pricing system. They should either charge us the same as the US OR charge us in AUD. By doing USD in the higher price it's inflating the cost as their double dipping the greedy pigs. The ATO is not at fault for this nor are they wrong to demand these companies pay the same tax that other businesses do.

Precisely. Steam has been ripping us off for a long time with their double dipping. I have no problem with paying GST for digital purchases, because that's where the majority of media is heading, so they need to get on it at some point. But it would be great if they could also put the squeeze on companies to get fairer prices for us - last time they grilled Adobe in the Senate they almost halved the price of Lightroom overnight.

 

[Trunkage]

As previously stated, this tax is just making the system more fair, especially for local producers. Without this, things will lead to more international business beating out the local. Which will lead to greater price because, as all ready stated, their policy is "Not America? Well screw 'em." If you want locals to compete with the internationals, then this is necessary.

I'm with Bernzz and RicoADF. When will our government fight for consumers?

Argue about how necessary it is all you want, not going to stop me and everyone else who is sick of being charged more just resorting to piracy. Rent, food, fuel, entertainment, its all just getting to the point where something is going to snap and a new tax that may be absorbed (naive optimism at its finest, they'll take the opportunity to hike the prices and then retail follows) even if it is 'fair' is just going to push more people into alternative, far cheaper options.

If the Government wanted to fight for the consumers they'd start addressing why companies get to charge so much extra here when, especially in the age of digital distribution, things like import costs and manufacture costs are not an issue anymore before they started adding more taxes.

I agree. Hence it being exactly what I said. The tax may push us to make the government do something. Because, clearly, those business interests and the government are not going to.

I am asking that we focus it on the companies poor behaviour, not (or at least not just) the tax.

 

[jklinders]

Ahh shit. The GST is not being universally charged in Canada yet on digital goods. If those clowns we currently have in Ottawa have their way that will change lickety split now.

Australia gets the shaft as it is. I have to wonder just why their politician hate their people so much.

 

[killerbee256]

It would have been nice if, instead of putting this 10% tax on digital goods that affects everyone, maybe close that loophole that lets big companies pay significantly less tax than they should.

I'm sorry those big companies bribe the government, therefore they own the government and they want to keep all the money.

 

[Elijin]

This is somewhat misleading.

There are 2 different issues here.

One is that digital goods pricing is absurd in Australia. That's an ongoing issue. This doesnt help, but its not related to tax.

The second is that the GST is a universal tax, and through the good old rules of laws lagging behind tech, digital goods had been missing it. Not exempt, just sort of overlooked. And while I know in America, tax = bad, given we have things like health care, and income support etc etc, tax is much easier to live with.

 

[jklinders]

Whist this is very bad for consumers, and will set digital distribution back ( as that extra 10% was already there but the distributor/publisher took it). I think its totally fair that tax should apply to a digital good as well as a physical one.

The problem is the crazy base price for stuff in AUS ( and Europe) for digital goods vs the US, just look at the differences in steam pricing of US vs UK vs AUS.

https://www.steamprices.com/au/topripoffs
https://www.steamprices.com/uk/topripoffs

Thats insane!

So a fix to a problem looks bad because your already getting screwed over.

OK.

I knew it was bad, but a lot of the games on that list are a half decade old and being charged what a new game costs here for a digital copy. I'm in Canada so i am a little clueless on the finer points here. Are these price disparities being forced by the government on digital purchases out of some kind of craptastic need to enforce pricing parity with the brick and mortar stores that cannot get physical copies cheaper? If that's the case then, no, no no no no no no no. there would be marching in the street if it was about virtually any other kind of consumer good.

I might consider games to be a luxury item rather than a right but I draw the fucking line at artificially hiking prices to babysit non competitive busininess practices.