Government’s leaked Discussion Paper evades Australia Tax issue

The official release of the Government’s Online Copyright Infringement Discussion Paper has sparked questions about the inquiry into pricing on its one year anniversary.

The leaked discussion paper detailing the Australian Government’s proposed options to combat online piracy was officially released yesterday. Attorney General George Brandis and Minister for Communications Malcolm Turnbull are calling for public input on its three proposals.

The paper comes just over 12 months since the House Standing Committee on Infrastructure and Communications launched an inquiry into the pricing of IT goods and services in Australia. The report found that Australians pay 52% more for music that Americans, for reasons which could not be explained by the committee; thus, it’s been termed the ‘Australia Tax’.

Consumer watchdog group CHOICE has noted Brandis and Turnbull’s discussion paper outright evades the Australia Tax and has called on the Government to properly address Australia’s online copyright infringement issues.

CHOICE Campaigns Manager Erin Turner told TMN: “A year after the IT Pricing Report was released, the Government has failed to address the high cost of digital goods in Australia. At the same time they’re exploring punitive measures as part of a ’war on pirates’.

“CHOICE, like many organisations in Australia, wants to see piracy rates reduced. But unless we look at the reasons behind piracy in Australia we will never find an effective solution,” said Turner. “Australians pay around 50% more for digital content like movies and television. In an Internet age, the only reason behind this price discrimination is a company choosing to charge more. We can’t reduce piracy unless we make content more available and affordable in Australia.”

CHOICE’s media statement notes Australians are charged 45% more for the debut album from Mullumbimby-born rapper Iggy Azalea on iTunes than Americans. The Australian iTunes also charges buyers 82% more for Adelaide artist Sia’s LP 1000 Forms Of Fear than the US iTunes.

The AFR published a statement from Ed Husic, the Labor MP whose criticisms of Australia’s tax laws and price gouging sparked the inquiry. Husic said: “It’s been 12 months since the IT price inquiry report was released – but all we have from the Abbott government is inaction. As a result, Australian consumers and businesses are paying a high price for the Abbott government dragging its feet on IT price discrimination.”

Turnbull does seem aware of the technology price inequalities however; yesterday he conducted an interview with ABC news program AM where he suggested music companies ought to foot the bill for any schemes intended to crack down on online piracy.

“The content owners in the debate that’s going to follow this discussion paper have got to justify why they charge more to Australians, why they are not releasing content in Australia at precisely the same time as it’s released in the United States or anywhere else in the world,” Turnbull said.