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An Australian Netflix Tax Is Kicking Off This Week

Viewers could be hit with a 10% fee hike

An Australian Netflix Tax Is Kicking Off This Week

Image: Pexel

Australian streaming services including Netflix, Stan and Spotify will be hit with a GST tax for the first time, which kicks off later this week.

From July 1st, subscribers will fork out up to an extra 10 per cent for digital products and services bought in Australia from overseas companies - and yes, that applies to all those House Of Cards marathons.

A Netflix spokesperson told The Daily Mail: "We collect and remit tax wherever we are legally obligated to do so."

The popular streaming service is yet to confirm if they'll pass on the tax hike or absorb it into their current fees but comes as Netflix tested temporary price hikes back in May.

Australian Netflix members currently pay $8.99 for a basic package, $11.99 for standard and $14.99 for premium.

International companies previously used a legal loophole that sidestepped their legal obligations to collect GST on digital products and services exported to Australia, and the government hopes to now even the playing field.

“It ensures Australian businesses selling digital products and services are not disadvantaged relative to overseas businesses that sell equivalent products in Australia,” said Treasurer Scott Morrison when the bill was introduced.