In case you haven’t heard, our Netflix prices are on the rise this week as the new “Netflix Tax” comes into effect on Saturday. But before you go ahead and cancel your subscription (or ask your parent/SO/friend whose Netflix account you’ve been leeching off the whole time to do so), here is everything you need to you know in time for your Saturday Netflix binge.
So what actually is the “Netflix tax”?
Basically, the Australian Government decided in 2015 to incorporate the 10 per cent GST tax to streaming services, including Netflix. This means the current prices for Netflix each month will be increased slightly, and only in Australia.
An estimate of the price increase includes the basic package of $8.99 a month rising to $9.99, the HD standard service from $11.99 to $13.99 and the premium service from $14.99 to $17.99. These figures are equivalent to the prices Netflix trialled back in May, and are most likely similar to what we will be seeing, come Saturday.
Why is the Government increasing prices?
In May 2016, the passing of the Tax and Superannuation Laws Amendment Act meant that imported, paid for digital content and streaming services, such as Netflix and Spotify, would include the 10 percent GST. The GST applies to pretty much anything we buy, but the increase of online shopping and streaming services in recent years created a “loophole” where the GST didn’t have to be accounted for. This bill is to make sure that doesn’t happen any longer.
What will be the outcome of the Netflix tax?
Although it may seem like a bit more change will be coming out of your pocket, by paying a little extra every month means you’re essentially helping home-grown content. With the Netflix tax, domestic streaming services such as Stan will be able to compete on a level-playing field as the streaming giant. By helping fund the Australian economy through GST, it means this rise will be contributing towards helping our own entertainment industry.
So there you have it. Although it may cost you a few extra dollars each month to stream your favourite entertainment, just remember this will be helping fund Australian content – which is what we’re all about!