Ahriman
Tyrant
Wow, that's insane. What idiotic government passed that one? Is it all software, or just for entertainment purposes?
Well, mystery solved then.
Publisher: pls explain 80USD Australia price on Steam
- Thread starter OzJeremy
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Wow, that's insane. What idiotic government passed that one? Is it all software, or just for entertainment purposes?
Well, mystery solved then.
Hehehehe....... yes I do like to have my fun, but in this instance I'm not fooling around.
I work for the company that owns Libra and Tena (pads and tampons for those that don't know), and yes there is a 47% luxury tax on those products. For those wanting a price comparison, at the staff shop I can buy packs of Libra pads for the missus for $1 a pack. That's manufacturer price to the retailers. The tax is applied instead of GST. There's no GST on female hygiene products, so it was exempt from the luxury tax removal since it wasn't replaced with GST.
My brother is a tax accountant, and he confirmed there's a 47% tax on computer software.
And does that tax apply to digital copies sold via the internet...... I don't think so!
Commander Bello
Say No 2 Net Validations
I just take these prices as Mercade stated them (haven't approved it by myself)
For me it reads like a 33% markup (Steam in comparison to Play Asia), which is obviously not influenced by taxes.
Which in turn means the following: Steam is not cheap. Steam is not doing gamers a favour (both have been statements of the SSS [Steam Sunshine Squad] in the past).
Furthermore, it contradicts the claim that prices are due to the publisher's/developer's decision.
Steam prices are Steam prices - prices made by Steam to maximize profits for Steam (and once again, from the company's perspective this is absolutely ok - if their customers are willing [translate: stupid enough] to pay 33% more than at other places, it is their decision).
Psychic_Llamas
Wizard in the Making
I really want to hear what 2K Greg has to say about this.
Ahriman
Tyrant
How do you arrive at that conclusion?
What does the price in Australia, and whatever issues there are in the Australian market, have to do with the value or not of Steam anywhere else?
How? Publishers can set different prices in different markets.
Sahkuhnder
Delusions of grandeur
Commander Bello
Say No 2 Net Validations
Since all the prices seem to refer to the Australian market?
Since it seems to be rather unlikely that Steam would do gamers in other countries good, yet not in Down Under?
Once again, since all the prices seem to refer to the Australian market?
Commander Bello
Say No 2 Net Validations
No, we're an importer as opposed to an exporter because Maggie decimated our industry. Just as Germany was investing in their manufacturing infrastrucure we were selling ours off and closing it down. It has little to do with the currency exchange rate.
I agree it's insane and tbh I'm still highly skeptical. I trust Dale but I don't know about his brother.Ahriman said:
Dale, does this tax have a name or can I look it up somewhere? I have been unable to find anything like a mention of a 47% tax on computer software. Is it a point of sale tax? Does it even apply to purchases made to sellers overseas?
When was this legislation passed? If it was only recently maybe it hasn't received much media attention...
I don't mind being proved wrong on this but I am going to go so far as to say one of you (Dale or brother) has an inaccurate source (ooh, I hope that doesn't sound too narky
).Even if you can't find an official source, can anyone? Are we all supposed to just believe your brother?
Osama Bin Davis
Warlord
The answer is actually very simple. Australia has a 47% luxury tax on computers and software.
Ironically, the same tax is applied to tampons and pads. Since when were THEY a luxury!
we havent had that for years, they got rid of that when the gst was brought in...
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thats what i thought
As an Australian Ive found Steam to be Hit and miss with there pricing some times they charge the same or pretty close to what you'll pay for it at a store at other times it can be A LOT cheaper it seems to change on game by game basis which makes me think its publishers dictating the price not Valve. I also would not be surprised if there's some sort of price fixing agreement between Game Publishers and there local Distributors.
As someone suggested earlier Gifting is the best way to get around the steam prices assuming you know someone in the US.
As someone suggested earlier Gifting is the best way to get around the steam prices assuming you know someone in the US.
Dale
Mohawk Games Developer
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Not all of them.
So Dale, do you have anything to back up the claim other than your brother's word?
Dale
Mohawk Games Developer
- Joined
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I agree it's insane and tbh I'm still highly skeptical. I trust Dale but I don't know about his brother.
Dale, does this tax have a name or can I look it up somewhere? I have been unable to find anything like a mention of a 47% tax on computer software. Is it a point of sale tax? Does it even apply to purchases made to sellers overseas?
When was this legislation passed? If it was only recently maybe it hasn't received much media attention...
I don't mind being proved wrong on this but I am going to go so far as to say one of you (Dale or brother) has an inaccurate source (ooh, I hope that doesn't sound too narky
Even if you can't find an official source, can anyone? Are we all supposed to just believe your brother?
Ok I got the straight of it from my brother. Sorry, but it's a really boring explanation.
He says that the way software distribution works for companies like 2K is that each region is controlled by their own division. So, 2K Australia will purchase (for example) 100,000 units of Civ5, of which 50,000 for Steam distribution and the rest for other methods (such as retail, promotions etc). Thus we get a set base cost price for 2K Australia. 2K Australia will add on a set margin to cover their costs such as insurances, wages, operating costs, transportation (yes I know Steam doesn't incur a transport cost, but Steam's bill is still classed as a "distribution" cost and fits in here). Thus we have base operating cost. 2K Australia will then add a little on for profit and thus you get retail price. Retailers whack on their margins and you have the price YOU pay.
Now the tax bit comes in when 2K Australia purchases the items from 2K USA. 2K Australia is "importing" those 100,000 units. They will incur duties and taxes (including GST) which equates to ~47% of cost price. This is part of 2K Australia's operating costs. It's what the old 47% luxury tax was replaced with. Basically, they transferred the old luxury tax to customs and other auxiliary taxes.
He apologises for confusing us all by using the old name, but in tax circles they still refer to it as that.
EDIT: My brother also says "Free trade agreement my ass. Call it a US screw AU Agreement instead".
We are getting screwed. We get screwed on everything. Take Apple computers for example. We pay a HUGEEEEE premium on almost all Apple products over what you guys pay for them in the US. We get the usual "you're so far away, shipping costs" crap. Um, they're made in China, last time i checked thats closer to Aus.....
Ok thank you for the explanation Dale. I'm still no closer to being able to personally verify it (as a skeptic would always want ). Can it be seen on any government or department website? Are there any related phrases that are actually googlable? e.g. searching for australia luxury tax was quite fruitless when I tried it. 
). Can it be seen on any government or department website? Are there any related phrases that are actually googlable? e.g. searching for australia luxury tax was quite fruitless when I tried it. Thyrwyn
Guardian at the Gate
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