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Time to axe the Australia tax?


tax, GSTChoice is calling on the Federal Government’s Competition Policy Review to axe the ‘Australia tax’ and give consumers the benefit of more competition from overseas markets.

The consumer group says the high prices Australians pay for identical goods and services purchased from identical websites include paying 54 per cent more than US consumers for top 10 new release movies in Apple’s iTunes store.

Australians pay 33 per cent more than US consumers for a selection of new release and upcoming Playstation 4 video games, and pay $50 a month to watch Game of Thrones on Foxtel, when a UK consumer can watch it in a subscription package costing just $9 a month.

Australians can also pay up to 60 per cent more for clothing and up to 200 per cent more for cosmetics.

Choice CEO, Alan Kirkland, says the government’s review comes at a critical time for Australian consumers, with markets being transformed by digital technologies and competition from overseas, while some businesses are resisting the pressure for change.

“There is a real potential to benefit Australian consumers, giving them access to cheaper goods and services,” Kirkland said.

“Australians face many barriers to accessing these benefits, whether it’s outdated laws that prop up entertainment monopolies or the ‘geo-blocking’ on overseas websites that recognises a consumer is from Australia and either blocks them altogether or applies a specially marked up price.”

Choice says another key challenge for the review is to focus on competition from the consumer perspective, rather than from the perspective of big or small business.

“The energy market is a great example of what goes wrong if we fail to think about consumers. On the surface, there is much more choice in energy providers than 20 years ago, but consumers still find it a bewildering experience to shop around for a better deal.

“Unless the Competition Policy Review makes it easier for consumers to navigate complex markets like energy, banking and telecommunications, the whole exercise will be a missed opportunity. It does not matter how much marketing and choice there is unless consumers feel confident that they can find the best deal for them.”

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