Joe Hockey Wants To Tax Your Online Movie & TV Downloads

Federal Treasurer Joe Hockey has his sights set on adding the GST to movies and TV shows downloaded via Australia's new batch of online streaming services such as Netflix, according to reports.

As the ABC explains, the issue was tabled during today's Council On Federal Financial Relations meeting between Hockey and the state and territory treasurers in Canberra, with the Federal Treasurer eyeing off a piece of an economic pie he says could be worth "billions" to the country. 

"There is no doubt that there would be an increase in overall revenue if the GST were to be applied right across the board to the delivery of information and licensing and so on over the internet," Hockey said.

"It could represent billions."

According to the ABC's report, Hockey said that, regardless of its base of operations, any organisation delivering such a product within Australia should fall under the GST's purview.

"GST should be charged at the source, so a company providing intangible services into Australia, such as media services or so on, wherever they are located, they should charge GST on those services," Hockey said, adding that companies worried about being put at a competitive disadvantage by being forced to add GST to their prices had nothing to fear.

"There are a number of those companies that are prepared to charge the GST on the services that they are putting into Australia, but they want to know that they are not at a competitive disadvantage … [however,] there are now fewer providers of goods into Australia than there might have been two or three years ago," the treasurer said.

"Therefore, you can identify those major providers of goods and ask them to charge GST as well so that there is competitive neutrality."

The suggestion comes as Australia's online entertainment landscape undergoes a seismic shift towards increased options for locals seeking more affordable and available sources through which to download TV shows and feature films legally — especially in the wake of this week's landmark court decision that saw the makers of hit film Dallas Buyers Club win the right to obtain personal information about 4700 or so Australians who are accused of pirating the film.