On the one hand, taxing digital goods isn't that bad of a way to make money, and if prices for such digital goods or services are, say, a 10 dollar service per month thing, you only have to pay a dollar extra. Of course, then you have to calculate currency differences, 10 dollars us is 12.65 australian. Which becomes 13.91 with the 10% tax.
Then there's scale. Online purchases are probably much more expensive then 10 dollars, and a lot more pricing rates that makes this into complete and total bullshit territory. Take a full price retail game. 59.99 US, but 99.99 in Australain. Add this tax, and you're paying 10 dollars extra for this game. Making an already over-priced commodity even worse.
And this isn't even getting into the ridiculousness of say, buying parts of a PC online, or buying electronics in general online, or buying anything that has to be shipped to australia, online.
10% is a really, really, unfair rate to tax stuff. At least, in my opinion it is.