Australians will pay up to 20 per cent more for Netflix as the streaming video giant rolls out a price rise alongside the introduction of the GST "Netflix tax".
Australia's "eBay tax" GST charges — applying to online physical goods purchased from overseas — might have been delayed 12 months, but the "Netflix tax" kicks in on July 1. It applies 10 per cent GST to digital content such as online video, games, apps and e-books.
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Netflix is also taking the opportunity to slip a price rise in with the tax hike, slugging Australians with their first increase since the streaming service launched locally in 2015.
As of June 28, Australia's single-user standard-definition Netflix plan rises $1 to $9.99 per month including GST. Meanwhile the two-user HD plan increases $2 to $13.99 and the four-user Ultra HD plan jumps $3 to $17.99.
![Aussies will pay more to watch Netflix hits like <i>House of Cards</i> each month after the streaming video service ...](http://web.archive.org./web/20170730235419im_/https://www.fairfaxstatic.com.au/content/dam/images/g/t/3/9/9/q/image.related.articleLeadwide.620x349.gwzw9j.png/1498650870914.jpg)
While the 10 per cent GST charge will go into the government's coffers, the rest of the increase will go to Netflix's bottom line, with subscribers on the top-tier plan facing a 20 per cent total price rise. The changes have been on the cards since last month when Netflix began testing the water to see how Australian customers would respond to the new prices.
Adding a price rise on top of Australia's digital tax is justified by Netflix's introduction of new content and features, says a company spokesperson.
"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," the spokesperson says.
"We also adjust plans and pricing to respond to local market changes, such as tax or regulatory changes. Since launching in Australia in 2015, we have not changed pricing. In light of the upcoming GST increase, we will be rolling out updated plans and pricing starting June 28 in Australia. We will start sending existing members 30 day notices from June 29 onward."
Netflix is only offering existing Australian subscribers a 30-day grace period before the new pricing kicks in, unlike US price rises in recent years which were delayed up to 24 months for some existing customers in the face a significant backlash.
New US Netflix subscribers now pay US$7.99 for the entry-level plan, which works out at more than AU$10 per month before the addition of US sales tax which varies from state to state. In return US viewers enjoy access to a considerably larger Netflix library than Australian subscribers.
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