Consumers could soon have to pay goods and services tax ( GST ) on their movie and music downloads in a government moves to reel in extra billions of dollars in revenue . Treasurer Joe Hockey said the states had agreed to work toward applying the 10 per cent GST to movies and music downloaded from streaming services such as Netflix and Apple . The changes may also affect consumers buying any products for less than $ 1,000 online from overseas , thus affecting companies such as Google , Microsoft , Amazon and eBay . But consumer advocacy group Choice says tech-savvy Australian consumers might be able to avoid the tax by concealing their location through virtual private networks , which make them appear to be outside the country . Scroll down for video . Australian movie and music downloaders could soon be slapped with a 10 per cent tax in a move that could reel in billions of additional GST revenue for the federal government . Choice argues that the government should instead be tackling the exorbitant domestic costs of TV shows , music and movies , and difficulties accessing them . Netflix subscription : 90c increase to $ 9.90 . Standard iTunes song : 22c increase to $ 2.41 . Google Play movie : 60c increase to $ 6.60 . Standard Amazon song : 13c increase to $ 1.42 . Adobe Creative Cloud subscription : 99c increase to $ 10.99 . 'We need to make it easier ... in order to encourage greater competition , ' Choice chief executive Alan Kirkland told ABC radio on Friday . Netflix has indicated that it would increase the cost of its service in line with any new laws and regulations . 'We pay taxes as required under local and national law , ' a spokesperson from Netflix US head office said . With an $ 8.99 per month fee for its service , Netflix customers would only have to pay at least an extra 90c while song downloaders would pay an additional 22c for $ 2.19 track on iTunes . Federal Treasurer Joe Hockey announced that each states and territories ' treasurer had agreed to the tax , which he declared was an 'integrity measures for the tax base , not the broadening of the GST or an increase of the GST ' With an $ 8.99 per month fee for its service , Netflix customers would only have to pay an extra approximate 90c while song downloaders would pay an additional 22c for $ 2.19 track on iTunes . Federal Treasurer Joe Hockey announced that each states and territories ' treasurer had agreed to the tax , which he declared was an 'integrity measures for the tax base , not the broadening of the GST or an increase of the GST ' . 'The states agreed in principle that we should move in that regard . I have offered to work as quickly as possible with them to introduce legislation to address that in relation to intangibles , ' Mr Hockey said , according to the Financial Review . It comes after News Corp Australia chief executive Julian Clarke slammed the foreign companies ' ability to avoid paying tax , consequently leading to an unlevelled playing field in the advertising market . Mr Clarke implored the government to 'fix that problem ' during a Senate Standing Committees on Economics in which he argued against the disadvantage of competing against overseas companies with a lower operating cost . Tech-savvy consumers might be able to avoid the tax by concealing their location through virtual private networks .
Treasurer Joe Hockey wants the 10 % GST to apply to streaming services . Netflix customers would pay 90c extra ; iTunes songs would cost 22c extra . Hockey said the tax measure would raise billions in extra revenue . But consumer advocate says techies will be able to avoid the tax .