Gold 104.3

Now Playing:

Listen on

There Is REALLY Bad News For Netflix Users In Australia

Thousands of Netflix subscribers in Australia are going to be hit with a new tax on July 1.

The new pricing could see the service get 10% more expensive and will officially be paying more than America does.

H&R Block Director Mark Chapman told the Daily Mail 'Firstly to raise money for depleted government revenue from an untapped source and secondly, to level the playing field with Australian competitors who are already subject to the GST rules, such as Stan, who are obliged to charge GST on the subscriptions they charge Australian consumers for their streaming service.

'The timing is being heavily driven by Australian businesses which are complaining about the disadvantages they suffer compared to overseas-based businesses; that and the need to fill holes in the government’s coffers,' he said.

'At the moment, subscription to Netflix is GST-free so after the tax comes in, the price of a Netflix subscription will go up by 10 percent.

'Also affected will be things like Apple iTunes purchases and fees charged by overseas owned online marketplaces like Amazon and Ebay,' he said.

Currently, Netflix customers can subscribe to three different plans, starting at $8.99 and becoming as expensive as $14.99.

Share this: