Netflix hikes prices ahead of government's "digital GST"

28 June 2017

Netflix Australia is upping subscription prices by as much as 20% today, ahead of the government's introduction of a goods and services tax (GST) on digital goods a services sold in Australia on July 1.

Informally referred as the "Netflix Tax", the measures were designed to level the playing field by taxing international players - such as Netflix - in the same manner as local players - such as Foxtel and Stan. And you know, make the government more money.

A basic Netflix subscription will now cost up $9.99, up $1 or 11% from the original $8.99 per month price. If you want to stream in high definition, you'll now pay $13.99, up $2 or 16% from the original $11.99 plan. And if you want to stream in 4K, you're now looking at $17.99 per month, up $3 or 20% from the original price of $14.99.

While each of these increases is greater than the 10% Netflix has to pay the taxman, a Netflix spokesperson says the increase in price also reflects new features and content the service now provides.

"From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster," said the spokesperson. "We also adjust plans and pricing to respond to local market changes, such as tax or regulatory changes."

Today marks the first time Netflix has raised its prices in Australia since it launched in 2015.

New subscribers will pay the increased rate from today, while existing customers will receive 30 day notices from tomorrow onward.


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