Cost of iphone 3GS

Hi all,
Does anyone know why the new iphone 3GS is so much more expensive in Australia than it is for the same phone in the US? In Australia they cost from approx $800 and can be over $1000 depending on the model. Where in the US, the most expensive one I found was $299. Even with the exchange rate it doesn't exlain the massive price difference.
Cheers
Cass

This is a question that can't be answered by the other IPhone users in this user-to-user tech support forum. Apple employes who occasionally participate here aren't at liberty to discuss Apple business polices, and discussion of this is prohibited by the forum Terms of Use.
iPhone prices are negotiated between Apple and cell carriers for each country. The price is determined in part by the amount of subsidy the carrier gives Apple, which they can recoup during a contract. Local laws are also an issue. In the USA, each phone is subsidized about $300 by AT&T (for new contracts).

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    - A
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