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New Tax On eBooks and Audiobooks in Australia

28 June 2017

From Amazon Publishing:

Due to new legislation in Australia, a Goods and Services Tax (GST) of 10% will be levied on all eBooks and audiobooks sold to customers residing in Australia beginning July 1, 2017. The royalty rates in your contract with Amazon Publishing are unchanged (as royalties are paid exclusive of GST).Amazon Publishing will not be changing its prices in connection with GST at this time.

Link to the rest at Amazon Publishing

Amazon, Non-US

6 Comments to “New Tax On eBooks and Audiobooks in Australia”

  1. Makes me wonder what the current GST is on paper books. If less or nothing then we need to start ‘selling’ them two page ‘books’ with the links to get the ‘free’ ebook in them.

    • The GST is a flat 10% on everything except selected essentials (fresh food, bread etc).

      The issue is that it is untrackable and uncollectable when purchases happen online overseas and no physical item is sent to Australia via customs.

  2. A GST is already added to paper books. This new legislation is not targeted at ebooks, but is general law on low value imported goods. It was heavily lobbied to Government by the biggest Australian retailers who like their profits and can’t be bothered to compete online. Too late though, Amazon is launching later in the year in Australia.

  3. I see that Amazon is not raising prices at this time. That is very good news for authors – otherwise there would be a spike in piracy; the only people that typically benefit from high taxes are the black marketeers.

  4. I’ve hated the GST since Howard brought it in way back when. Now that my ebooks will be taxed as well, I’ll be buying nothing but indie ebooks because 10% of $2.99 is 29 cents. 10% of $15 is $1.50…oh, just had a thought, the GST on AUD conversions will be even more, I think.

  5. It’s interesting. It looks to me like they’ll take the GST out of the book price and then apply the royalty percentage.
    So $4.00 book, becomes $3,60 ex GST and then if on 35% the author gets 35% of $3.60.
    This is what Apple does already in Australia. I guess as an Aussie, I’m used to GST so it seems fair enough to me

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