Hockey: From the 1st of July 2017, the GST will be applied to all products and services sold by vendors into Australia

I'd ignore the VPN and crypto cases as they are their own little nest of problems that are much deeper. But as for the other three scenarios, I completely agree.

I own a (proudly) Australian owned business supplying digital subscription services internationally, and I've been very disappointed in the government over the past few years from both sides (collectively relating to the pending TPP, time to market and implementation of NBN, and general large-corporate driven taxation laws -- ie power over pragmatism and innovation)..

The problem comes with competition globally for our services, if I'm unable to compete on price in foreign markets, then I'm unable to sell services to foreign markets, and foreign markets are by a significant majority our largest customers. So what do I do? Well we set up subsidiaries within those regions to provide those services, and charge competitive pricing because our overheads are reduced through changes to corporate governance and taxation laws and the benefits of transfer pricing between regions. And before you jump on any potentially negative connotations, it's also sensible minimisation of overheads to remain competitive and stay in business.

But in doing that, my company becomes less Australian, and more European, American, and Asian. And as much as I want to keep my company largely Australian, backed by Australian equity I sadly can't because of the laws the preclude Australia from competing globally on services and the failure of the government to support innovation in Australia. So Australia gains less benefit from my company than I believe it should be entitled to (because I wholeheartedly want to provide services directly, but in doing so wouldn't have a customer base to provide those services to in order to remain competitive).

I have had some time to think about these particularly disappointing issues (let's say half a decade) and have come to the conclusion that there are so few Australian companies delivering product (physical, or digital) to foreign markets that the government are yet to understand the economics of conducting international business. And while some private enterprise exists to deliver services to foreign markets, most are structured similarly, and many are considering their options to move the parent company to more supporting countries for digital commerce (say Singapore, China, Japan, or the UK).

Certainly very few are looking at IPO on the ASX. And this is the saddest part of all.

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