ByEva Brain, writer at

Netflix tax is coming to Australia very soon

Netflix Inc. is the online streaming giant that recently expanded its global footprints to the region of Australia and New Zealand on March 24. And it has been a successful expansion as the company managed to get a very good response from the users. As internet in the country is very expensive to surf and stream online video content, Netflix kept the prices as low as it could to cater them. But it was speculated that the Australian government might impose tax on Netflix.

Hence with this decision of the Australian government, it is believed that the final cost of online services based in Australia that also include Netflix will see a raise in prices due to GST charges, according to latest Netflix news. It is believed that around more than $1 billion is lost currently in the region due to online services being sold in the country without GST charges. Mostly, overseas company benefit from it and the Australian government wants to put a halt on this.

Business Insider reports that if Fairfax Media reports are to be considered true, the government will be proposing a year budget next week that will include plans to charge GST on online services sold in Australia that include online movies and TV shows from Netflix or Hulu, eBooks, and music and software available for download on online forums and marketplaces. Fairfax Media said “The government’s expenditure review committee has been told that the change is fairly easy to make, requiring little redrafting of the Tax Act.”

Joe Hockey who is a treasurer stated last that the nation is keen to strengthen its GST so it is targeting the providers of online music and movie downloaders. “It is not fair to tax payers or to retailers or their many employees, to exempt overseas online retailers from the GST even if some consumers are enjoying the ride.”

The government has not only specifically targeted Netflix but if others are to be concerned, then gamers should be worried as well. Steam is said to be one of the targets as well that will notice a rise in price due to GST imposed on them. Rumors were that cabinet ministers have rejected the Netflix Tax proposal and it will continue to work as it already does. But Australian government confirmed that they will impose taxes very soon.

It is a matter of time that everything goes expensive again for the Australian users. Netflix made full efforts to provide them with the best services, but they can not overrule government’s decisions, as reported by recent Netflix news today.


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