A report by Oxford Economics, commissioned by the Digital Industry Group (DIGI), forecasts that the consumer surplus from digital services in Australia will reach $82 billion in 2025, up from $44 billion in 2019. The report estimates an average consumer surplus of $7,836 per Australian household by 2025.

The report, released during an open inquiry by the Productivity Commission into enhancing Australia's productivity with a focus on data and digital technology, highlights the economic value of digital tools. These tools are used for productivity, communication, entertainment, shopping, food delivery, navigation, and access to learning and information.

Michael Brennan, Head of Economic Impact at Oxford Economics Australia, is the lead author of the report. Brennan stated, "This report shows that digital services are delivering enormous hidden value to Australian households. They save us time, reduce the cost of daily tasks, and improve access to healthcare, education, entertainment and communication, often at little or no cost."

The report attributes the increase in consumer surplus to new and improved digital products and features, rising digital adoption, population growth, and the increasing relative value of free services amid inflation. Digital engagement in Australia has surged since COVID-19, with total data downloaded each month more than doubling between 2019 and 2023.

DIGI Managing Director Sunita Bose emphasized the need for a collaborative policy approach to keep pace with technological change. Bose stated, "As the Australian Government considers how to boost productivity, responsibly harnessing data and digital technology will be a key priority. To achieve this, we need policy settings that effectively address complex challenges like safety, privacy and access, while preserving the benefits and convenience Australians rely on every day."

Key data from the report includes a breakdown of consumer surplus by category in 2025: Social networking tools are expected to contribute $16.4 billion, online shopping and convenience $12.7 billion, online entertainment and learning $12.3 billion, search engines $11.2 billion, email $8.9 billion, banking $8.1 billion, travel and mobility apps $6.4 billion, and e-Health $5.9 billion.

Internet usage in Australia rose from 93.6% in 2019 to 97.1% in 2024. NBN connections in Australia grew from 9 million to over 13 million between 2019 and 2024. Online retail spending in Australia has grown at a 20% compound annual growth rate since 2014.

The report identifies four key drivers of growth in consumer surplus from 2019 to 2025: $22 billion from improvements in digital platform products, $9.6 billion from inflation, $3.4 billion from population growth, and $2.8 billion from increased digital uptake accelerated by the COVID-19 pandemic.

Brennan noted, "As cost-of-living pressures grow, the value of these services becomes even more pronounced. The rise in consumer surplus reflects how essential digital tools have become. They’re now fundamental to how we communicate, access information, and manage everyday tasks."

DIGI, a non-profit industry association advocating for the digital industry in Australia, partners with the government on online safety, consumer protection, and misinformation. Bose added, "Digital products and services are delivering enormous economic and social dividends to Australians, boosting productivity and expanding Australians’ opportunities. Our national conversation must now focus on how we continue to grow this contribution responsibly."

Brennan concluded, "Our analysis finds that the digital sector plays a key role in household resilience. As more services go digital, ensuring affordability, accessibility and innovation in this space will be critical to supporting household wellbeing."