The 2015 Federal Budget certainly made more headlines than usual and even introduced a new phrase into our vocabulary thanks to the so-called Netflix tax.

New tax laws being introduced these days across the globe are more likely to be aimed at taking money out of your wallet rather than putting it in and Australian citizens are now digesting what the Federal budget means for their finances.

The Netflix Tax Explained

The term Netflix tax was used by Treasurer Joe Hockey during a budget press conference and was used to describe an additional 10% tax that Australian consumers will have to pay for digital services purchased from the likes of Netflix and Amazon amongst others.

Any digital products or services you buy online such as books, movies or games will be subject to the Goods and Services Tax (GST).  The rules state that Australians making physical online purchases which are valued under AU$1,000 won’t have to pay the GST and it has been confirmed that this won’t change even after the proposed adjustment announced in the budget.

Paul Ryan’s Budget Buster by KAZ Vorpal, on Flickr.  This work is licensed under a Creative Commons Attribution-ShareAlike 2.0 Generic License.

Fringe Benefits

It is worth pointing out that another aspect of the budget speech which didn’t get as much press coverage, was the fact that there would be no Fringe Benefit Tax (FBT) applied to mobile devices.

The abolition of FBT on all portable devices used for work like mobiles, laptops and tablets, means that it will be worth asking your employer if they might help you stay in touch with technology, although there are numerous conditions you might have to meet to qualify and the exemption doesn’t come into force until April 1st 2016.

HELP Repayments Affected

If you are an Australian citizen who currently works abroad, you have so far not been obligated to repay any HELP debt that you incurred while studying at university.

The bad news is that is all going to change from the first day of 2016 and you will be required to make repayments once your income moves above the current salary threshold of AU$53,345.

Unemployment Benefit

Another announcement in the Federal budget was the fact that some controversial and unpopular policies have been dropped.

The proposition that anyone aged under 30 will no longer have to wait up to six months to receive unemployment benefit and proposals to force a co-payment when visiting doctors, have both been scrapped.

Budget Planning

Things like the GST are bound to have an impact on many people who have to think carefully about what they are spending and need to budget to balance the household books.

Ferratum provides cash loans to Adelaide residents, and any short term finance solution can be useful in helping you meet a bill or cope with an unexpected repair.

As with all forms of finance, provided you create a realistic budget and stick to your plan so that you make the most of your income, it should be possible to still enjoy entertainment from the likes of Netflix and Amazon, despite the threat of GST to your wallet.

Jeff Mitchell is an economics teacher.  He enjoys writing about the financial scene in Australia.  Look for his posts on many money and finance blog sites.