Here's How Much Extra Australians Will Pay For Apple Apps Now

The Apple App Store is about to get a bit of a tweak thanks to currency conversion rates between Australia and the US changing. The short of it is that you're about to pay more for all of your iOS apps. Here's exactly how much apps will cost now.

Apple published a chart on its developer portal this morning showing just how much customers are now going to be charged.

US Price Australian Price
0.00 0.00
0.99 1.29
1.99 2.49
2.99 3.79
3.99 4.99
4.99 6.49
5.99 7.49
6.99 8.99
7.99 9.99
8.99 10.99
9.99 12.99
10.99 13.99
11.99 14.99
12.99 16.99


    Currency conversion my arse, looks like a blatent rip-off, 8~9% would be close to current currency rate not the ~25% in their caclulation
    Though this is what we are to expect from Apple

      You're forgetting GST (and an unfavourable exchange rate based on a hedging assumption that the AUD will fall)
      $US0.99 / 0.9 Currency conversion +10%GST = $AU1.21
      So we are getting screwed but not as much as you think.

      Works out pretty much bang on if you drop the hedging assumption to a long term exchange rate of 85c to the dollar.

      Last edited 02/04/14 11:54 am

        hes talking about the larger priced apps

        That is not a simple gst+currency conversion adjustment

        If that were the case then the difference would be linear and not progressive since we operate using percentages

          OK so looking at the most expensive option
          $16.99 = $15.45 +$1.55 GST
          at 90c to the dollar $US12.99 = $AU14.43
          at 85c to the dollar $US12.99 = $AU15.28

          The maths still works out roughly right at a conversion rate of 85c which is probably a good, safe long term figure that most companies would be already using or looking to use in the near future.
          I know my company is currently still using 90c to the dollar, but the last review was in September.

          PS. I'm not an Apple lover by any means, I own Android devices and run Linux PCs at home and have never and will likely never buy anything from iTunes.

          Last edited 02/04/14 1:25 pm

            can i have your broker? because the exchange rate has been 80-83 for the past few months

              eh? no it hasn't
              The lowest point has been 86c over the past year!

        $1.29 - $0.99 = $0.30 Correct?
        Of the $0.30, $0.03 is GST leaving $0.27 price rise.
        That is and increase of ~27%

          Dodgy maths @tso..
          GST is calculated on the total price, not the difference between the two prices.
          ie of the $1.29, $1.17 goes to Apple and 11.7c (ie 10% of $1.17) is GST

            Compounding GST??
            You forget that the original price has GST on it.
            $0.99, GST = $0.09 correct?
            $1.29, GST = $0.129 correct?

              To get the GST of an item, you need to divide by 11, not 10.

              So $0.99=$0.09 GST and $1.29=$0.12 GST (or $0.117).

                Splitting hairs? - ok you win :-)

              Now I understand what you're talking about with compounding GST..
              The bit you're missing is that the left hand column are the US prices (not the old Australia Price), US don't have Federal GST and even in the states that do have Sales Taxes they don't have to be displayed as part of the price.
              So when converting from US99c you have to do a Currency conversion and then calculate the 10% GST on top.

              Last edited 02/04/14 2:08 pm

                So you're say that we haven't been paying GST on an item in Australia that attracts GST, sorry I didn't see that in the article.

                  The pricing table in the article is US prices on the Left, AU prices on the Right.. I can see that it could be confusing given the old AU price apparently was 99c, but that's not my point.

                  Where the new US price is 99c, the Australian price is $1.29 which calculates roughly equal value plus GST.
                  That's my comment and always has been.. the prices are at parity after factoring conversion rates and GST!

                  Last edited 03/04/14 10:03 am

        Honestly, I was under the impression that Apple isn't actually charging the GST, or passing it on to the ATO.

          It's company taxes that they're not paying. Essentially, they fiddle their inter-company expenses so that any profits show up elsewhere (Ireland I believe) rather than Australia.

          They could possibly avoid paying GST by basing everything overseas, but if they tried that the ATO could probably get them for tax evasion, since they do have a significant Australian operation.

      But why would Apple seek to only rip off Australians, when their U.S. market is undoubtedly larger. Just wondering.

    US Price Australian Price
    0.00 0.00

    I don't know why, but that made me chuckle. At least free is still free.

      its not

      our data packets cost more so a free app costs more by comparison when you consider data rates we pay

      (aaaand nobody got the facetious tone)

      Last edited 03/04/14 12:11 pm

        HAHA, never thought i would see someone complain about Free. Its free but we are still getting ripped off. Its in the data rates lol.

        Last edited 02/04/14 12:15 pm

    Is logging in to the US App Store an option to save a little?

      Yes it is, but you'll need to have a US account. You can open one with a US iTunes card bought off eBay.

    I don't mind the extra bit if Apple doesn't mind paying their actual taxes.

    As expected. I gave Apple the flick 2 years ago. Crap like this just makes me smile now.

    So correct me if I'm wrong, but prices didn't decrease when our dollars were at Parity a little while ago.

      In fact they did go down a few years ago. These 'new' prices are pretty much what we paid in the App Store prior to the dollar being at, or better than, parity.

        That's why the $1.29 price looked familiar. Thanks.

          Memory cheating you there -- before the last price change, $0.99 apps cost $1.19, not $1.29. So it is a new high, albeit hardly an expense most people couldn't handle without blinking.

    You forget that your friendly local IOS developers get more from this deal. Apple still only takes 30%. SO you are in fact supporting Australian Developers. And if price was an issue the app would be free anyway. Still less then a Nespresso Pod or a cup of coffee.

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