Netflixâs Australian tax bill revealed
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Netflix Australia paid less than $500,000 in tax for the 2019 calendar year despite more than an estimated 5 million subscribers paying at least $9.99 a month.
That is because the revenue from Australian subscribers â estimated between $670 million and $1.2 billion â flows to a Netflix company resident in the Netherlands.
Australiaâs tax system has not evolved to capture all the revenue earned by international tech companies from Australian consumers and businesses.Â
In the 2019 calendar year, Netflix Australia paid income tax of $485,371, up from $341,793 in the 2018 year, according to Australian Securities and Investments Commission filings.
In 2019, Netflix had three tiers for its streaming service: $9.99 for basic, $13.99 for standard and $19.99 for premium. However, Netflix increased the price of its premium tier in October 2019 from $17.99.