The revamped Google Contributor program will start collecting GST on behalf of the Australian Government effective July 1st.
The Google Contributor program was re-launched earlier this month allowing Australians into the program for the first time. Contributor allows users to pay money directly to websites for each page you view in return for not being bombarded with ads.
The change to collecting GST is in line with a requirement from the Australian government for all foreign sellers to collect and remit a Goods and Services Tax (GST) of 10% from local Australian customers, effective July 1st. Google is starting to email Contributor customers to explain the update, and how it will work:
You will still be charged $5 every time you replenish your Contributor account balance. However that $5 is now inclusive of a GST of $0.45, which will be reflected in your receipt. That means your account balance to spend towards ads free pages will effectively be $4.55.
The price-per-page for an ads free experience on publishers you are subscribed to, and the balance threshold of $1 for when your account is automatically replenished, will not be affected by this change.
This is, well, it’s fair, it’s a legally mandated tax but it does cut into the amount of webpages you can view with your $5. Google Contributor allows websites to charge anywhere from 1c per page view, meaning this change means you can effectively view 45 less pages if each page costs you $0.01 to view.
It’s happening folks. There’s other services which will be following suit and we’ll be letting you know as they crop up. You can check out your Contributor contributions on the Contributor Dashboard.
If someone was to buy ads THEY would pay GST on the ads. If you pay not to have ads YOU pay the GST. Interesting how that works.