Skype Passes “Netflix Tax” Onto Customers

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Skype has become the latest digital giant forced to change its business model for the Australian market, following the introduction of the “Netflix Tax”.

In an email sent out to customers, the company says that “in order to meet new Australian tax requirements, Skype will be required to include Goods and Services Tax (GST) for customers in Australia.”

The Microsoft-owned VOIP service says it will delay charging customers at higher GST-inclusive prices until 1 Au‍gust 20‍17.

From next month onwards, the price of all transactions (both for Skype credit and Pay-As-You-Go plans) will increase by 10%.

“If you do not agree with this change, you can cancel your subscription prior to 1 Au‍gust 20‍17,” they advised customers.

The move follows similar ones by both Netflix and Stan. Both raised their monthly fees in response to the new tax, which requires 10% GST to be applied to digital products.

Music streaming service Spotify has emerged the odd one out, with a spokesperson telling CNET that “at this time, we have no plans to increase prices for Spotify in Australia.”

According to Treasurer Scott Morrison, the new tax – first proposed in 2015 – “ensures Australian businesses selling digital products and services are not disadvantaged relative to overseas businesses that sell equivalent products in Australia.”

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