Australian Apple Pricing

Discussion in 'Apple, Inc and Tech Industry' started by cosmichobo, Jul 28, 2017.

  1. cosmichobo macrumors 6502

    cosmichobo

    Joined:
    May 4, 2006
    #1
    G'day,

    Netflix in Australia has just put up their pricing, citing a "new tax" as the reason.

    The new tax, it would appear, is the loopholes that the Australian government has closed, stopping entitles such as Apple, Google, and evidently Netflix etc from avoiding paying local company taxes on revenues raised within this country.

    Question this raises - will Apple and others now follow suit? Will anyone buy Apple products with another 10+% added on?

    cheers

    cosmic
     
  2. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #2
    If they were taking advantage of that loophole that is now closed, probably.
     
  3. Carnegie macrumors 6502

    Joined:
    May 24, 2012
    #3
    I suspect you're referring to the Diverted Profits Tax which recently went into effect in Australia. That's not the new tax that Netflix is referring to.

    Australia extended the applicability of its (10%) Goods and Services Tax to digital goods and services imported by consumers. That change also recently went into effect. That's the tax that Netflix is referring to.

    Some others likely will follow suit and raise prices on digital goods and services in response. I'm not sure Apple will; I've read that it was already applying the tax to iTunes purchases.

    A last note: If we were talking about an income tax increase, in most cases that wouldn't result in raised prices. Many of the taxes which businesses pay function as pass-through taxes - they (fairly directly) raise the price of goods or services. Because of the way income taxes work, however, they typically don't.
     
  4. cosmichobo thread starter macrumors 6502

    cosmichobo

    Joined:
    May 4, 2006
    #4
    Ohhhh right - when the Government went around the world, telling foreign companies how to run their business.... That's right... I thought it was just an April's Fools or something...

    Well, ok, thread on hold then. :)
     

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