It’s often said that the Australian version of Netflix is like having a fridge full of vegetables, heaps of choice but no one’s trying to treat themselves with carrots and sweetcorn.
One of Netflix’s saving graces is just how cheap it is to have access to a wide range of movies and television shows, but the Australian Government’s looming tax on international digital products could tip the balance out of Netflix’s favour for some customers.
From Saturday the 1st of July, expect to cop a 10% or more tax on digital services or products that you purchase in Australia from overseas companies. This is the first time Australia has slapped the GST on digital products.
At this point in time, Netflix is the only major service that’s openly admitted that their customers will see a slight hike in price, but definitely expect to see other services like Spotify and Apple Music do something similar.
Speaking to The Daily Mail, a Netflix spokesperson said: “We collect and remit tax wherever we are legally obligated to do so.” They haven’t yet commented on whether they’re going to make the consumer cop the entire cost of the GST or whether they’ll help reduce the impact by absorbing it into subscription fees.
At the moment, we’re currently paying $8.99 for a basic package, $11.99 for a standard and $14.99 for the super luxe premium. With the new tax, you’ll be paying about a month’s extra for a year’s worth of the goods.
It’s expected that this new tax will level the playing field and allow for local boys like Stan to compete with major international companies. We’ll have to see how it plays out, and whether it’s worth forking out the extra money to end up rewatching the same show’s you’ve seen a thousand times.