But consumer advocate says techies will be able to

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.

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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.

NEW TAX PRICES 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 Advertisement

'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.