Netflix has posted a sharp 18% jump in its Australian revenue, pulling in $1.3 billion in 2024.

But scrutiny is growing after it was revealed the company shifted 93% of that – roughly $1.2 billion – offshore, slashing its local tax obligations and leaving behind just $23.3 million in reported profit.

New financial filings with the Australian Securities and Investments Commission (ASIC) show Netflix paid $21.4 million in marketing costs and $46.9 million in administration, while only contributing $10.1 million in local income tax.

The platform, which has an estimated 6.2 million Aussie subscribers, funneled most of its earnings back to parent entities via “distribution fees” under transfer pricing arrangements.

Despite economic pressures facing households, Netflix continues to dominate Australia’s streaming market. Data from Telsyte confirms it remains the country’s top streamer, far outpacing rivals like Amazon Prime Video (4.8 million subscribers), Disney+, and Stan.

The company’s thin 1.7% profit margin in Australia stands in stark contrast to its global results, where it posted US$39 billion in revenue and an operating margin of 26.7% in 2024.

The results come as the Albanese government revives plans for local content quotas after pausing them over U.S. trade concerns. Two options are being considered: linking spending to subscriber numbers or a fixed share of local revenue – both opposed by streamers and broadcasters fearing higher costs.

Netflix, which claims to have invested over $1 billion in Australian content from 2019 to 2023, says it’s already invested over $1 billion in Australian content, pointing to shows like Territory and Apple Cider Vinegar.

But with the government pushing ahead and Trump threatening tariffs on foreign-made films, pressure is mounting on global platforms to boost local production.

Streaming remains one of the few resilient consumer spend categories, but as Netflix grows its Aussie footprint, scrutiny over its cultural and financial contribution is intensifying.