“Netflix Tax” To Shake Up The Price Of Streaming From Next Week
Netflix subscriptions are set to increase in price next week with the introduction of the Australian government’s new “Netflix Tax”, potentially shaking up the company’s dominance in the content streaming market.
First proposed back in 2015 – the change will now see the providers of digital goods and services (such as Netflix) forced to pay 10% in GST, regardless of whether or not the product or service in question is coming from overseas.
According to Treasurer Scott Morrison, the new tax “ensures Australian businesses selling digital products and services are not disadvantaged relative to overseas businesses that sell equivalent products in Australia.”
Australian users currently pay $8.99 for a basic package, $11.99 for standard and $14.99 for Netflix’s premium tier. Assuming that Netflix forwards the cost directly onto customers, that’ll see the basic package rise to $9.90, the standard to $13.20 and the premium bumped up to $16.50.
A Netflix spokesperson confirmed to The New Daily that they would be adjusting their Australian to account for the change.
“We collect and remit tax wherever we are legally obligated to do so,” a spokesperson said.
Similar pricing increases are also expected to come to digital services like Spotify, iTunes and Steam when the tax kicks in on the 1st of July.