The 'Netflix Tax' Is Coming; Is Australian Netflix Still Worth It?

With the Australian Government announcing a new ‘Netflix Tax’, our student contributor wonders if the streaming service is still good value.

Remember the times you would have to wait until an episode played on TV to find out what happens after that dreaded cliffhanger? Or when you had to watch your television shows when the networks planned on airing them?

The internet altered that, but Netflix was the absolute game-changer. Netflix, a television and movie streaming program developed in the US, provided a solution, releasing shows as whole seasons, and allowing us to binge-watch our television shows whenever we wanted, for a fixed monthly sum. Australia, however, took a while to join the bandwagon. Netflix Australia only launched earlier this year, with up to 6000 fewer titles, due to copyright laws, and a slightly higher price.

“Still worth it,” I thought, as I watched an entire season of Broadchurch in one day.

However, the Australian government has announced their plans to extend the GST tax to imported online goods and services, such as ebooks, music and software. Known as the ‘Netflix tax’, its purpose is to prevent tax evasion of online businesses. However, for me and most of us, it adds a cost to a service that's already not providing nearly as much as promised. So, is it really still worth it?

Let’s start with a quick Australia vs. U.S. Netflix comparison:

Both contain Netflix owned-and-produced shows such as Orange is the New Black and House of Cards.

Yet, unlike U.S. Netflix, American-produced shows airing on free-to-air television here are not published on Netflix due to copyright laws. Popular shows such as Revenge and Once Upon a Time are not available on Australian Netflix at the moment; rather, they’re only available on local TV channel websites, which are taken down within one month. Instead, Australian Netflix is ‘tailored’ to cater to the Australian audience, containing many Australian-produced television shows, such as Summer Heights High and Redfern Now.

Whilst this is a welcome addition - the promotion of quality Australian television - is it still worth paying between $8.99 and $14.99 (excluding the projected 10% ‘Netflix tax’) a month for these services?

Well, that depends. Are you are fan of non-US-produced television shows? Netflix Australia essentially provides any nation’s content, but there is a gap when it comes to the most known shows of all: the US shows. There is still variety though, with Netflix Australia providing content that is unavailable on Australian television, and maybe that’s enough for you to keep watching.

Just don’t put your hopes too high and expect to find every critically acclaimed American show. If you enter without this expectation, the 1000+ shows and movies available to you will be worth it, even with the proposed extra taxation (which, by the way, won't go into effect until July 1, 2017, and that's only if the legislation is passed). Netflix is still the solution for those who don’t like to wait, but it may not be worth it if you expect all mainstream US television to be within your reach.

Emily Lam is one of Student Edge’s student contributors. Learn more about the contributors program.