As the new financial year rapidly approaches, our experts outline key changes that take effect from 1 July 2017 – and advise what you can do to best prepare for them.
In this wrap-up, we examine the changes set to take place in the areas of Competition & Consumer, Property & Real Estate, Superannuation, and Workplace Relations & Safety.
Competition & Consumer
Dubbed the "Netflix Tax", from 1 July 2017 GST will be imposed on all inbound intangible supplies made by overseas suppliers to Australian consumers.
This will impact items including video games, media, software, e-books and other digital content, including streaming services such as Netflix. It also applies to imported services including consultancy and professional services performed offshore for Australian customers.
This will arguably act as an equaliser given local Australian companies must collect GST, whilst global companies, at least until 1 July 2017, previously did not have to collect GST on services and digital products exported into Australia.
Treasurer Scott Morrison told Parliament when first introducing the Bill that the tax “…ensures Australian business selling digital products and services are not disadvantaged relative to overseas businesses that sell equivalent products in Australia”.
The Netflix Tax will raise key legal issues as overseas businesses must confront whether the supplier or operator of the distribution service is responsible for collecting the tax.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
