Netflix has confirmed that Australians will pay up to 20% more for the digital streaming service to align with the introduction of the GST to digital products and services purchased in Australia from international companies.
Netflix has increased its prices ahead of the legislative changes which will come into effect on 1 July 2017. The company is using the opportunity presented by the digital tax to hike its prices by an additional margin. From today, Australian subscribers will pay:
- Single-user standard-definition Netflix plan increases by $1 to $9.99 per month, including GST
- Two-user HD plan increases by $2 to $13.99
- Four-user Ultra HD plan increases by $3 to $17.99.
While the estimated $350 million in revenue from the 10% GST charge will go towards state and territory governments, the remainder of the increase will go straight towards feathering Netflix’s nest.
Since launching in 2015 in Australia, Netflix has not changed its pricing.
The company will start sending existing members 30-day notices from 29 June 2017.