The Australian Federal Government confirmed today that it will introduce the “Netflix Tax,” meaning Australian consumers will have to shell out an extra 10 percent for goods purchased from digital services like Netflix, Google, Steam and Amazon.

Treasurer Joe Hockey revealed during a press conference today that the 10 percent Goods and Services Tax (GST) will be charged to all digital products and services bought online, such as games, movies and books. Australians currently don’t pay GST on physical online purchases under AU$1,000, and Hockey said that won't change after the adjustment.

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"What we’re doing is going to digital providers overseas and saying ‘can you apply the GST to the products you provide into Australia?’," Hockey said according to IT News . "They are agreeable to it. It’s not their profits [being taxed]. It’s a tax collected and they remit it back to the country where that occurs."The extra tax charged by the online companies will be given back to the Government. Hockey believes once the GST expands to encompass digital services sometime after July 1, it will raise $350 million over four years. Full details will be revealed when the Federal Budget hits 7:30 p.m. AEST Tuesday, May 12. Netflix US has previously stated that it will add the GST to its service when the federal government passes it. The redrafting of the Tax Act won’t change the price of iTunes downloads as Australian consumers already pay GST on purchases from Apple's online store.

Jenna Pitcher is a freelance journalist writing for IGN. You can follow her on Twitter