Australians can expect to pay more for streaming services such as Netflix when the new taxes kick in.
Australians can expect to pay more for streaming services such as Netflix when the new taxes kick in.

Why streaming movies will cost more from July 1

AUSTRALIANS can expect to pay more for streaming services such as Netflix as well as for songs and movies downloaded from the internet when a range of new taxes kick in at the end of the week.

Sunday will also be the final one where hundreds of thousands of low-paid workers in the retail, fast food and hospitality sectors receive their current penalty rates, which will gradually be reduced from next weekend.

Labor's employment spokesman Brendan O'Connor said there could not be a worse time to cut penalty rates for up to 700,000 Australian workers because wages were already declining in real terms.

But supporters of the penalty rate cut argue that most workers won't notice the slight reduction because it will coincide with a boost to the national minimum wage.

From next weekend, two million Australians on the minimum wage will receive a 3.3 per cent pay rise, giving workers $22.20 extra a week, or $1154 more a year.

But Federal MPs will be at least $4000 better off each year when a two per cent pay rise kicks in from July.

The pollies' pay increase will also coincide with a tax cut after Parliament voted to remove a two per cent levy which hit Australians earning more than $180,000.

The new financial year will also see the company tax rate drop from 30 per cent to 27.5 per cent for businesses with up to $25 million in annual turnover.

But large banks and multinational companies including Apple, BHP Billiton and Chevron will be forced to contribute more to the Government's coffers from July 1.

The Diverted Profits Tax (DPT), or "Google tax", will force large companies with global revenue of more than $1 billion to pay a 40 per cent tax on all profits.

The Government will also raise $6.2 billion in revenue over the next four years by imposing a 0.06 per cent tax on Westpac, ANZ, Commonwealth Bank, NAB and Macquarie.

GST will be applied to digital downloads purchased in Australia from overseas companies in what has been dubbed the "Netflix tax".

First home buyers trying to save for a deposit will be able to make pre-tax contributions to their superannuation accounts from next week with the launch of the government's First Home Super Saver Scheme.

Under the plan, renters will ask their employers to direct up to $30,000 of their pre-tax salary into their super accounts, which can then be withdraw to purchase a property.

In an effort to free up housing stock, the Turnbull Government will also tax foreign owners who leave properties unoccupied.

From Saturday, holiday-makers escaping overseas will no longer need to fill out an outgoing passenger card, which the Government says will make departures quicker and easier.

Treasurer Scott Morrison said the Coalition had passed 17 separate pieces of legislation in six weeks to implement its Budget.

"This is the hour to be practical; to be a government that gets things done, to provide Australians with certainty," Mr Morrison said.

This article originally appeared on The Advertiser.

News Corp Australia


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