How the ‘Australia Tax’ is ripping you off

Australians are tired of paying extra. Source: ThinkStock

AUSTRALIAN consumers have had enough of paying inflated prices on almost all goods, from cars to clothes to gadgets.

The digital fightback is gaining momentum — and excuses about shipping, higher wages or labour costs just aren't holding water.

Here are just a few examples of rip-off items whose retailers are being named and shamed online.

The price differential of the Razer Blade caused outrage on social media. Source: News Limited

RAZER BLADE LAPTOP

$AU3299.95

$US2199.99 = $AU2453.06

35% more

Technology — hardware and software — is notoriously more expensive in Australia than elsewhere. The gaming community have expressed outrage at the disparity and customers are increasingly buying gadgets directly from Asia. A parliamentary inquiry last year found that Australians pay on average 50 per cent more for products than their US counterparts. OECD statistics show that Australians have an average household income of $33,546, while in the US it's $34,493. A Reddit user added shipping and customs duty and found that the Razer was still 12 per cent more expensive in Australia. His calculation missed the GST on that shipping and customs duty: but is this "tax on a tax" acceptable? Several remarkable investigations last year showed it was actually cheaper overall to catch a return flight to the US to buy Microsoft software than buy in Australia.

Lancome lipgloss is among the many marked-up cosmetics brands. Source: Supplied

LANCOME LIPGLOSS

$AU44

$US23 = $AU25.67

71% more

The online beauty community is highly active, with a glut of forums and YouTube videos sharing hints and tips. So it's no surprise that customers are sharing their horror at the fact that well-known brands routinely cost as much as 200 per cent more. Retailers have blamed shipping costs for years, but most brands manufacture their products in Asia. Things could change now it's getting easier to source products from online stores including strawberrynet.com, and with cosmetics retail giant Sephora is set to open a Sydney store at the end of the year, pledging to bring its US prices to Australia. Myer and David Jones are reportedly pressuring their suppliers to bring prices closer to global levels.

An imported car is a luxury that's off-limits for most. Source: Supplied

HONDA ACCORD V6

$AU49,990

$US27,355 = $AU30,535

64% more

Imported cars can cost two or three times more in Australia, particularly premium brands, with a Porsche 911 Carrera costing $94,700 in America but $206,500 in Australia. The biggest factor is the Luxury Car Tax, introduced in 2000 — a tax of 33 per cent imposed on the GST-inclusive value. The government recently proposed to allow new cars to be ordered from overseas online, but they could cost up to $12,000 each to ship and process.

Prices on designer classics and high street staples are ramped up. Source: Getty Images

BURBERRY TRENCH COAT

$AU2495

$US1795 = $AU2003.71

25% more

Clothing choice is growing, with global high-street brands including Zara and TopShop and now H&M and Forever 21 coming to our shores — but they all charge more. Many argue that rent is more in Australia — pushing Australians to become among the world's most active online clothes shoppers, desperately hunting for those bargains from stores like ASOS. But this is simply not true when compared with areas like New York. And while shipping can be a factor, the growing number of bulk shipments to warehouses should drive costs down. As with cosmetics, most factories are in Asia on busy flight routes, so arguments that Australia is "isolated" don't really stand up.

Even downloading music and films costs more for Australians. Source: AFP

A BRAND-NEW SINGLE FROM THE iTUNES STORE

$AU2.19

$US1.29 = $AU1.44

52% more

It's not just physical goods that we're paying extra for either. Even downloading a song from iTunes costs Australians more. And you frequently won't even be able to download your chosen film, song or TV show from within this country. Tom Godfrey, consumer watchdog Choice's head of media, told news.com.au business reporter Wenlei Ma: "Even after excluding the GST, we found Australians pay 33 per cent more than US consumers for the top 10 new release movies in Apple's iTunes store. It's time to end digital discrimination and call the tech giants to account for 'Australia Tax'."

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