As of July 1st, any Australians subscribed to Netflix are going to find themselves paying 10 percent more than the normal rate. It’s being called ‘Netflix Tax’.
This is actually an abridgement to the GST legislation, as it’s set to hit all available Aussie digital products and services that are purchased from overseas companies.
Netflix Tax arrives! New GST charges set to affect apps, music, e-books and games purchased from overseas companies will roll out on July 1st.
On the bright side, Netflix are yet to confirm whether or not they will absorb some of the charges by lowering the subscription fees, which range from $8.99, to $14.99 per month depending on your type of service.
The law introduced by Treasurer Scott Morrison is intended to help local streaming services to compete with global opposition, and give them more a higher advantage when selling their products within Australia.
New Zealand, Europe and South Africa have also put these laws into place, with Australia predicted to rake in $350 million in taxes over the initial four year stint.
