What prices are going up under Australia’s ‘Netflix Tax’?

Saturday, 01 July 2017, 07:54:58 PM. AUSTRALIANS will pay an extra $200 million for home entertainment, apps, video games, e-books, and software this year and consumers will start to feel the pinch this weekend.
But adding the GST to digital downloads, in a move dubbed the “Netflix tax”, has already been exploited by some companies as a way to raise prices even more than 10 per cent, and experts warned it would not be long before the tax was costing consumers $1 billion a year. The price of watching House of Cards on Netflix will rise in Australia under a 10 per cent tax on digital downloads from overseas. Picture: David Giesbrecht/Netflix via APSource:AP The Australian tax on digital downloads from overseas kicked in yesterday (July 1) after being introduced in the 2015 Federal Budget as a way to close the “digital tax loophole”. The scheme will see overseas firms collect GST from Australian buyers on any digital items, including streaming TV and music services, smartphone apps, digital books, and video games. READ MORE: Netflix could be forced to produce Australian content But Telsyte managing director Foad Fadaghi said the new tax would not raise the price of all digital offerings in Australia, with Apple, Adobe, and Spotify prices immune, leaving users with homework to do. “It’s going to be confusing for some customers because they might already be paying the GST on some services and not paying it for others,” he said. Netflix, after which the tax has been named, is one company raising its price to cover the 10 per cent tax, and adding more charges on top. The leading streaming TV service, with 2.7 million Australian subscribers according to Roy Morgan, raised the price of its...Read more
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