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Post by Dan @ 03:46pm 29/07/13 | 8 Comments
The committee responsible for investigating price hikes in IT products on behalf of the Australian Federal government has handed down their reported findings from the inquiry, and the results appear to be incredibly consumer-sided.

The report is the result of a process that was initiated last year by Labor MP Ed Husic, who at the time said "For too long, businesses and consumers have asked: why does it sometimes cost up to 80 per cent more to simply download software in Australia compared to overseas".

Federal Parliament reportedly received the report late last week, and you can now read the full 150 page document over at aph.gov.au (thanks Delimiter), which awesomely even notes the affectionate term 'Australia Tax' in its foreword:
Evidence presented to this inquiry left little doubt about the extent and depth of concern about IT pricing in Australia. Consumers are clearly perplexed, frustrated and angered by the experience of paying higher prices for IT products than consumers in comparable countries.

High IT prices make it harder for Australian businesses to compete internationally and can be a significant barrier to access and participation for disadvantaged Australians (in particular Australians with a disability).

Based on the evidence received over a 12 month inquiry, the Committee has concluded that in many cases, the price differences for IT products cannot be explained by the cost of doing business in Australia. Particularly when it comes to digitally delivered content, the Committee concluded that many IT products are more expensive in Australia because of regional pricing strategies implemented by major vendors and copyright holders. Consumers often refer to these pricing strategies as the ‘Australia tax’.
There's a huge amount of meat investigating the causes and affects of IT product price hikes throughout the epic document, videogame software and hardware included, but most interesting are its proposed remedies, which advocate ending geoblocking --the process of restricting digitally delivered content based on the geographical location of a connecting user's Internet address--, as well reviewing the TPM sections of the Copyright Act, and loosening other restrictions around parallel importing, and perhaps the most extreme: legislating the right of resale for digital content.

Whether any of these recommendations will or can actually be addressed by parliament, when they are so dependant on the will of big internationally-located companies remains to be seen, but at the very least, the report's findings should at least serve as somewhat of a moral victory for anyone feeling uneasy about grey-importing or using VPNs and the like to dodge geoblocks.



australiaaustralia tax





Latest Comments
eski
Posted 04:06pm 29/7/13
The Senate talk a big game, but it's all so toothless. Nothing will change because its completely legal under current laws.

This will probably become less relevant if the AUD keeps dropping.


I recently had this exchange with one of our software suppliers after receiving an email asking me if I want to continue maintenance.

My reply:

When I check the US maintenance prices they seem to be about 40% of the price you are offering me here. According to this page the price of a single years maintenance is US$495 (~AU$540 at current rates) while your price is AU$1272.

Are you able to give a detailed breakdown of why these prices are so different?


I wasnt expecting anything in the way of a coherent response, I just wanted to lube up before I bent over.


Thank you for your email and information.

The pricing on this website is for USA and Canada only and it will not be applied in Australia (Asia Pacific) region.
Please keep me posted regards to any enquiries and possible question or clarification.


My response:

I know that those prices aren’t available in Australia, I’m just wondering why they are so different.


Their response:

Perhaps the best answer would be differences between region, Tax, royalties, local Cost and currency exchange.
The pricing in Australia is based on company’s policy which is affected by the reason above.

Please let me know if I can still provide you more information and do not hesitate to contact me if you require any further information.


I love how they refuse to say they just do it because it makes them more money. There is absolutely no way that the difference in tax accounts for that amount.
ravn0s
Posted 04:04pm 29/7/13
legislating the right of resale for digital content.


some european countries have already done this. i think it's germany that's currently taking valve to court because they don't allow you to sell your steam games.
tel
Posted 06:20pm 29/7/13
I agree with eski, the senate are full of BS.
mooby
Posted 07:01pm 29/7/13
legislating the right of resale for digital content.

Hell yeah. Buy once off iTunes, resell 100times?
Hogfather
Posted 08:22pm 29/7/13
Hell yeah. Buy once off iTunes, resell 100times?

I gather the right of resale applies to selling your digital rights once..
Mass
Posted 10:11am 30/7/13
Woohoo legal Hulu, Netflix and every other service we aren't allowed to access due to geo blocking.

As for the AUD slide, the $ would need to get down to $0.56US to justifiy paying $89.95 for a game on steam that sells for $49.95 in the US store. We are a long way off that.
eski
Posted 12:05pm 30/7/13
Penny Arcade have been writing some nice things about Australia since PAXAus, and it seems like they're not deaf to this issue either. Good to see some people outside Australia getting miffed on our behalf.

http://penny-arcade.com/report/article/government-report-confirms-what-we-already-knew-australians-are-screwed-on
darkjedi
Posted 07:39pm 30/7/13
I think Mike's comment during the "draw a comic" panel on the Saturday about EB was pretty amusing - He was walking around Melbourne and went into an EB to get a charger for his 3DS. Thought about getting a game, took one look at the prices and was utterly horrified by them.
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