NEWS
Australian Steam Prices Expected to Increase
The Australian Federal Government's financial plan for the coming year is expected to have a new tax on all digitally imported goods. The tax is expected to drive Steam prices up by 10%. The tax is being dubbed as the "Netflix Tax".
"It is plainly unfair that a supplier of digital products into Australia is not charging the GST whilst someone locally has to charge the GST," Joe Hockey, Australian Federal treasurer said today, via ABC. "When the GST legislation was originally drafted, it did not anticipate the massive growth in the supply of digital goods like movie downloads, games and e-books from overseas."
Though the intentions are clearly to give Australian competitors a better shot at the market, no local competitor compares to Steam.
The treasury plans to earn $350 million over the course of 4 years with this new tax on digital goods. The tax is unlikely to meet much resistance from the opposing Labor Party.