Foxtel Welcomes Government Move to Force Netflix to Pay GST


Presto Streaming TV and Movies

Foxtel welcomes the Government’s plan to force Netflix to pay Goods and Services tax (GST), saying that this is “the right move.” The statement comes after Treasurer Joe Hockey confirmed that the Netflix tax will be included in Tuesday’s budget.

 

 
 
 
According to Foxtel, the legislation is designed to level the playing field with regards to GST on digital transactions. Bruce Meagher, Foxtel Group Director of Corporate Affairs, said, “The government’s move to enforce GST for the supply of digital content services is the right one. The digital marketplace is an increasingly competitive space and it’s critical to ensure that all players that do business in Australia do so on a level field, with no one player advantaged through tax loopholes.”

 

Foxtel operates streaming service Presto in collaboration with Seven West Media. The Netflix tax would add 10 percent to digital goods bought online – including games, movies and books provided by overseas companies. That means that consumers may have to pay an extra 10 percent for Netflix.

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