Australia’s infamous Netflix Tax arrives next week

Brodie Fogg 26 June 2017 NEWS

netflix-tax

Here's how much you will pay when the tax takes effect.

The Federal Government's planned GST on imported digital products and services, not-so-affectionately nicknamed the Netflix Tax, will take effect next week from 1 July 2017.

While the tax effects more services than just Netflix, the incredibly popular streaming service was used as a prime example of overseas companies bypassing Australia's GST (which currently excludes intangible digital products) when the tax was first proposed back in 2015.

For years, Australians have had to resort to more expensive pay tv services like Foxtel to get their dose of premium television so the introduction of a more comprehensive and more generous service was welcomed with open arms when it launched in 2015. The low admission fee of $8.99 a month also contributed to its success, so it makes sense that Australians are a little salty about the price jump.

From 1 July 2017 (that's this coming Saturday), the new tax will take effect.

How much will I pay for Netflix?

Digital products and services will incur a 10% tax (the same as any tangible product or service). That means Netflix will set you back $9.90 for the basic plan (standard definition, one device), $13.99 for the standard plan (high definition, 2 devices) and $17.99 for the premium plan (ultra high definition, 4 devices).

For comparison's sake, Stan will still set you back $10 per month (3 devices, high definition) and Foxtel Now will cost you $10 for its smallest package (or $15 per month to include Game of Thrones and Westworld in high definition on two devices at a time).

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