GST for Australian Authors & Customers

The Australian Government is introducing new rules that impact authors and customers based in Australia. Commonly known as the “Netflix tax”, the Government is now requiring that suppliers to Australian consumers collect and remit GST on all digital purchases and services.

This impacts any Australian author supplying to Australian buyers. If you are an Australian author currently registered for Australian GST, please note that Envato, as the Electronic Distribution Platform, will collect and remit the GST on your sales to Australian consumers from 1 July 2017.

In addition, as Envato provides Australian authors with services and charges you author fees, Envato is required to charge GST of 10% on your author fees. As a result, we will be charging GST of 10% on all Australian authors fees from July 1, 2017.

We encourage all Australian authors to do their own research and check with their accountants on how this impacts their business. Please also check to make sure that an ABN is in your profile. For reference, we’ve also written a help doc and we encourage all Australian authors to read it.

Customer facing changes

There are two small changes facing our Australian customers. To learn about them in detail you can click across to our help centre article here.

Change 1:

The first change deals with the new “Netflix tax”. Given that Envato is an Australian entity and classified as an Electronic Distribution Platform; from the 1st of July onwards we will be required to charge an additional GST fee of 10% GST on top of the cost of items and item support.

Why have we done this?

Quite simply, we need to comply with Australian tax law! New laws mean new rules, and we’ve got to ensure we comply with what the Australian Government asks of us so that we can keep our Envato platform alive and healthy.

Change 2:

The second change deals with how we process GST for our Australian Authors and Customers. In the past, Envato has absorbed the cost of the GST for both these parties. However from the 1st of July, we’ll be moving to a standard model of charging 10% GST on both author and buyer fees.

Why have we done this?

We had been absorbing this cost up until this point, so why stop now?

When we absorbed the cost of the GST for customers in the past, it wasn’t a case of wanting to show favouritism to our fellow Aussies (as nice as that may sound). Instead, we absorbed the cost because we simply didn’t have the resources available to build infrastructure that would manage the GST tax process for us. With the growth in our company, we’ve adapted our approach. Charging GST to our Australian customers keeps us in line with the rest of Australian digital platforms and means that selling to AU customers continues to make business sense.

Any questions, please feel free to ask them below.

So will we be charged 10% for every purchase, or just those to Australian customers? I’m assuming (and hoping) it’s the latter.

So. For instance.
An item is shown on the market, on the product page, as costing $16.
The VAT ($3.05) is added in the shopping cart.

So the customer pays $19.05 for an item.

From this, further on, these are substracted:

  • $3.05 collected by Envato as VAT
  • $1.6 collected by Envato as 10% tax for Australian GST or USA IRS (depending of buyer&author country)
  • $4 collected by Envato as buyer fee
  • $2.7 collected by Envato as author fee (in my case; other authors have different)

Until now, $7.7 remain and arrive in my bank account.
From here, the government in my country takes 33% as business taxes, which is $2.54.

In the end, the money I receive in hand for this item sale as author is $5.16.
Others (governments, Envato, others) take $13.89.

And I have not mentioned yet the Paypal and banks fees.

Not very correct. Am I the only one who feel I am working for governments taxes only? :sweat::dizzy_face:

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Your calculations are out as the 10% is charged on the author fee, not the item price.

You are from Romania!
See example for non-AU Authors here:

Hey @jamesgiroux,

Your post gives the impression that this only applies to Australian authors, but the help document you linked to goes on to explain that the GST will be added to the list price of all sales to Australian buyers, no matter where the author of the item may be located. Just thought I’d share!


Thank you for pointing this out. I think it still does not affect Non Au Authors, right? It works similarly to the VAT system in Europe, affecting the buyer and not the author?

correct, …as long as you are not an Australian author!

Non Australian Author:

case 1: Buyer is Australian
- 10% AU GST on list price for the buyer
- no AU GST for the author

case 2: Buyer is not Australian
- no AU GST on list price for the buyer
- no AU GST for the author

Australian Author:

case 1: Buyer is Australian
- 10% AU GST on list price for the buyer
- 10% AU GST on author fee for the author

case 2: Buyer is not Australian
- no AU GST for the buyer
- 10% AU GST on author fee for the author


From what I can tell, the GST on authors fees doesn’t apply to non AU authors, but the GST on the item price does apply to AU buyers, no matter where you are located. Not really a big issue but something to be aware of.

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Yes, I agree we have comply with Australian Law BUT why don’t you check to see that in actual fact this does not come into effect until JULY 1, 2018. I will wait until you change your billing system until I make a purchase.

Each state has its own tax policies

Definitely seems to be July 2017 rather than 2018…