Get Ready to Pay a Little Bit More for Netflix and Other Digital Download Products

netflix

It’s been floating around for awhile but now it’s official.  Digital goods offered by overseas providers into Australia (such as Netflix and Amazon) will be slugged with the 10% GST.  Movies, music, games, television shows and books offered by overseas providers like Netflix, Amazon, Google Play and Steam will all increase by 10% on July 1st.

Speaking with itnews, Treasurer Joe Hockey said “What we’re doing is going to digital providers overseas and saying ‘can you apply the GST to the products you provide into Australia?”  Companies such as Netflix have already stated they plan to comply with the request once local regulations were in place.  A spokesman for Netflix added: “Netflix has been and will be compliant with all applicable laws and regulations, and pay taxes as required under local and national law.”

Netflix’s local competitor Presto welcomed the tax as it was “critical” all players operate by the same rules.

Good news for those who buy physical goods from overseas retailers – those items will remain GST free, as long as the total cost does not exceed $1000.  Playstation, Xbox and Apple Itunes users will also be happy to know there will be no increase as the GST already applies.

How do you feel about the new so-called ‘Netflix tax’?  Sound off in the comments below.

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