A new report from Oxford Economics shows that free and low-cost digital tools provide Australian consumers with a surplus of $82 billion, or $7,836 per household in 2025.
Commissioned by the Digital Industry Group (DIGI), the report measures the economic value to Australian households from everyday digital tools used for productivity, communication, entertainment, shopping, food delivery, navigation, access to learning and information. The report shows that digital services are delivering extraordinary economic value to Australian households – value that often isn’t captured by traditional indicators like GDP.
The report comes during an open inquiry by the Productivity Commission into boosting Australia’s productivity, including the role of harnessing data and digital technology, and after an announcement by the Prime Minister on Tuesday about a new productivity roundtable.
Michael Brennan, Head of Economic Impact at Oxford Economics Australia and lead author of the report, said digital tools are delivering significant cost-of-living relief and broader social value.
“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.
“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.”
Mr Brennan said the consumer surplus had almost doubled from $44.2 billion in 2019 to $82 billion today and was driven by new and improved digital products and features, rising digital adoption, population growth, and the increasing relative value of free services amid inflation. This was reflected in the surge in digital engagement since COVID-19, where total data downloaded each month in Australia more than doubled between 2019 and 2023.
“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.”
DIGI Managing Director Sunita Bose said the findings reinforced the need for a collaborative policy approach that keeps pace with technological change.
“As Australia considers how to boost our national productivity, this report reveals how zero and low-cost digital products and services are helping Australians put more of what they earn in their pocket every month.
“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.
"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.”
A full copy of the Oxford Economics report can be found here
Key data from report
Overall economic impact:
- $81.93 billion: Estimated total annual consumer surplus from digital services in 2025.
- $7,836: Average consumer surplus per Australian household in 2025.
- This is a major increase from $44 billion in 2019.
Consumer surplus by category (2025)
- Social networking tools: $16.4 billion
- Online shopping & convenience: $12.7 billion
- Online entertainment & learning: $12.3 billion
- Search engines: $11.2 billion
- Email: $8.9 billion
- Banking: $8.1 billion
- Travel & mobility apps: $6.4 billion
- e-Health: $5.9 billion
Digital adoption trends
- Internet usage rose from 93.6% in 2019 to 97.1% in 2024 of the population.
- NBN connections grew from 9 million to over 13 million (2019–2024).
- Online retail spending continued to grow at a 20% compound annual growth rate since 2014.
- Total data downloads more than doubled between mid-2019 and mid-2023.
Drivers of growth (2019–2025)
- $22 billion: Increase from improvements in new digital platform products, features and user experience.
- $9.6 billion: Surplus increase driven by inflation (as free/low-cost digital services offered higher relative value).
- $3.4 billion: Additional value from population growth.
- $2.8 billion: Value uplift from increased digital uptake, accelerated by the COVID-19 pandemic.
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