More than 80 offshore suppliers of remote services have registered for goods and services tax since the government widened its net to apply GST to cross-border services such as streaming video, e-books, music, and software on Oct. 1, says Revenue Minister Michael Woodhouse.
The so-called Netflix tax was passed into law in May and captures payments for services such as iTunes downloads and Steam video games. Woodhouse told the Chartered Accountants Australia and New Zealand annual conference today that the tax was in keeping with the nation's broad base, low rate (BBLR) tax policy framework.
He outlined the government's tax policy work programme priorities through to the end of 2017, which include developing an exclusion from dividend taxation rules for certain demergers by Australian listed companies. The change is designed to prevent demerged assets being treated as taxable income when no distribution has been made.
"I have asked that this item be fast-tracked and officials will consult with stakeholders on the detail of the proposed amendment before its introduction in the tax bill scheduled for introduction early next year," he said. That bill will also fix an "overreach" issue related to the application of the voting interest test for corporate trustees, an issue that affected professional firms such as accountants acting as independent trustees for their clients' companies, he said.
In terms of international tax avoidance, Woodhouse said New Zealand had some work to do in terms of the OECD's BEPS Action Plan recommendations. They included New Zealand's transfer pricing legislation, which was no longer fit for purpose after 21 years.
