Retailers commend Hockey on ‘Netflix tax’ – now time for Amazon tax

THE Australian Retailers Association (ARA) is pleased Treasurer Joe Hockey and State Treasurers have recognised the unfairness of online digital content not being charged GST, unlike traditional forms of media.

Treasurer Hockey’s Netflix tax is said to be part of a clutch of tax integrity measures contained in next month's federal budget and would see popular overseas media streaming services, such as Netflix and Apple, charged GST on their downloads.

ARA Executive Director Russell Zimmerman said it is now time to apply GST to all goods purchased from overseas, with the Netflix initiative proving just how easy colleting such tax can be.

“It should be just as easy to collect GST from Amazon as it is to collect GST from Netflix and Apple.

“The ARA has been leading the campaign to fix the under $1000 GST loophole for goods bought from overseas and is frustrated by vested interests slowing reform.

“We know around 20 companies bring in about 80 percent of all overseas purchased goods.

“State Governments are losing billions of dollars in GST revenue which could support teachers, police and doctors. Australian retailers are also not being given a level playing field, and this is costing many local jobs.

“The ARA has been in discussions with the government on how to speed up reform of collection,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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