On­line prod­ucts

Port Douglas & Mossman Gazette - - NEWS -

YOU al­ready know to ex­pect to pay more for stream­ing ser­vices from July 1 when the gov­ern­ment’s so-called “Net­flix tax” comes into ef­fect.

But what you might not know is Net­flix has taken the forced tax as an op­por­tu­nity to roll out a new pric­ing struc­ture that ex­ceeds the re­quired 10 per cent, with one tier of the ser­vice in­creas­ing by more than 20 per cent.


As it stood pre­vi­ously, only im­ported goods or real prop­erty were sub­ject to the GST — a broad­based tax of 10 per cent on most goods and ser­vices sold for do­mes­tic con­sump­tion.

How­ever, from July 1, the “Net­flix tax” will see the GST ap­plied to sup­pli­ers of dig­i­tal prod­ucts and ser­vices such as stream­ing plat­forms.


While sup­pli­ers of dig­i­tal prod­ucts will be forced to meet the same 10 per cent price in­crease seen with other goods and ser­vices that fall un­der the GST, Net­flix will in­crease costs even more.

The com­pany’s web­site al­ready re­flects the new prices, with the ba­sic pack­age in­creas­ing from $8.99 to $9.99 a month, the stan­dard pack­age from $11.99 to $13.99 and the pre­mium pack­age from $14.99 to $17.99 - the pre­mium pack­age al­lows you to stream TV shows and movies from Net­flix on four de­vices at the same time in HD and 4K when avail­able.

This means there has been an 11.12 per cent, 16.68 per cent and 20.01 per cent in­crease for the ba­sic, stan­dard and pre­mium pack­ages, re­spec­tively.

Net­flix de­fended its pric­ing, say­ing that since launch­ing in Aus­tralia in 2015, we have not changed pric­ing. “In light of the up­com­ing GST in­crease, we will roll out up­dated plans and pric­ing start­ing June 28 in Aus­tralia. Mem­bers will be no­ti­fied of the changes via email and ser­vice no­ti­fi­ca­tions.”

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