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It seem that when the same good or service is available in Australia as it is internationally, we always end up paying more for it in Australia. Even when you take the effects of the exchange rates into consideration, the cost in Australia is always more, many time 50% or even more than 100% more.

A recent example of this is when I went to renew my Internet Security Subscription. It was going to cost me a bit over $300 in AUD for 3 years subscription for two computers. If I had chosen to pay in NZD I would have paid less than $300 once converted back to AUD. However, I chose to pay in Indian Rupees and for the same subscription paid 5,088.00INR, which when converted back to AUD came to just under $111 (including overseas Transaction Fees).

That is almost a third of the price for the same subscription, just because I had chosen to pay by a different currency. I am still using this subscription in Australia and included my Australian address in the Billing Information section of the Invoice. In my opinion this is crazy.

Why are Australians being ripped off all the time compared to other countries around the world, whether they be First or Third World Countries, and how can we find ways around these rip-off tactics by major retailers and save money?

DJClayworth
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Victor
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4 Answers4

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Best answer I've heard when asking this question is "because they can."

Traditionally Australia was remote enough, and it was justified due to the cost of shipping and importing... but now that's not the case and they're still sticking it to you, and you're still paying it. Even digital media (music, video, software), the poster-child of an item that has zero difference in delivery cost, cost more in Australia and there is absolutely no reason for it outside of the fact that you're going to pay it.

Sorry dude... Start finding ways to fight back. Find a US based VPN and route your purchases through the U.S., maybe save some money that way? Make your physical purchases overseas and ship them home when you happen to leave the country (if ever). Have friends do so when they leave the country...

Good luck!

jadoti
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https://www.ato.gov.au/Business/GST/ Some of the costs are indeed related to the conversion rate, which, as we all know,changes daily. You don't say whether you're using a credit card. If so, some cards do charge foreign transaction fees; some do not. However, Australia, like many European countries, does use a VAT system. Therefore your charges will be increased. Please be aware that these taxes are built into the economic system. In many cases, you van apply for and receive a waiver to be reimbursed if the purchase is made through a duty free store.

Carla Toby
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Suppose that the fixed overhead costs of delivering a service, not related to the actual volume of sales, are $50 million per year. Suppose the variable costs on top are $100 per customer per year. Suppose further that 1% of the population buys the service.

In the US, 3.2 million people buy the service, and it costs $116 per person to deliver it ($100 plus $50 million divided by 3.2 million). In Australia, 230,000 people buy it, and it costs $317 per person per year to deliver it ($100 plus $50 million divided by 230,000). The larger your market, the cheaper everything is, and Australia is a very small market compared with the USA, the EU, China or India.

Mike Scott
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When someone charges, it means that person fix the price you pay. Australia is part of the Indonesian continent. It is an island in the South Pacific ocean. In the price of an item, you include the shipping cost. It is more expensive by plane because the cost of the kerozen is higher than the cost of diesel for ships. Accident can happen, so you have to include in price the cost of the insurance.

Simon Boulanger
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