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  (Source: abc.net.au)
This is compared to other countries that receive the same products overseas

A new report shows that many software companies overcharge Australians by about 50 percent when it comes to sales of digital and IT products. 

The House standing committee on infrastructure and communications created a report called "At What Cost? IT Pricing and the Australia Tax." The report found that Australians pay an average of 50 percent more for software, hardware and digital media compared to other countries that receive the same products. 

The report, which surveyed over 150 products, showed that eBooks in Australia were 16 percent more expensive while downloaded music had a 52 percent cost difference and games were at a whopping 84 percent.

Products from individual companies were surveyed as well, finding that Adobe software had an average price difference of 42 percent, Autodesk was at 51 percent and Microsoft topped the charts at 66 percent. 

It was even noted that it'd be cheaper for Australians to fly to another country, buy software there and fly back than to just buy the same software locally. 

Issues that contribute to the higher local prices include the country's location, differences in tax regimes, high rent/wage costs, the small size of the market and the warranty protection costs. However, the report noted it was clear that there's an international price discrimination that hurts both Australian consumers and businesses. 

The report gave nine recommendations on how to make this better for Australians, including educating them on how to get the best prices on such products, getting rid of or altering parallel import restrictions that stop consumers from getting cheaper products from overseas and even scrapping geoblocking. 

Back in February of this year, Adobe slashed the prices of its software after Australians complained of consumer fleecing. For instance, the annual subscription rate for Creative Cloud went from AU$62.99 per month in Australia to AU$49.99. Access to individual titles in the software suite now cost AU$19.99 monthly.

Source: The Guardian





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