Why are airfares out of Australia in business or first class so much more expensive compared to ex-Europe?

I agree with most of the above comments, so what is to be done about it? One possibility, if time is not too important, is to do "position" flight to somewhere on one ticket and an onward flight on an other ticket. I will be flying to LHR via BKK and HEL in J. First flight is on JQ in Business Max from MEL to BKK and then in J on AY to HEL and to LHR in Club Europe on BA (as CE is much better than AY euro business). This is a lot cheaper than JQ in Business Max to SIN and then AY in business to HEL and LHR. This obviously would not suit everybody, AY business is not as good as BA Club World or QF business, but if you are paying for the trip yourself you save at least $2000! There are many other alternatives, JQ Business MAX to HNL and then on with AA etc. but as a QF Platinum the first alternative adds a lot of tier points. An other alternative is QF in J to BKK and BA in CW to LHR as it is cheaper than going via SIN

I don't get the 'competion' arguement - where people are saying those in europe have more choice than those in Australia in terms of airlines.  But if a european is flying a particular airline to Australia - surely that plane must turn around from Australia and fly back as well?  What I mean is, there are no more airlines flying Europe - Australia than the other way around. 

The Australian market is just willing to pay more I think and the airlines know this.  Also with the strength of the AUD if I was an airline abroad I would be wanting to take advantage of that as well - by charging the highest amount possible in AUD to then convert into my home currency revenue.

May I suggest you look at Chan Brothers out of Singapore. Do a flight check, and you will find that the prices are roughly?? the same as OZ. There are the very specials (Air India/SK) at the very bottom, but most are at OZ prices. Know if you check Westminister travel out of Hong Kong you will see what market forces do. It is far cheaper across the board out of Hong Kong than OZ or Singapore.

I think you will find that it is a combination of all the things mentioned above.

PS I have booked with Garuda Indonesia to LGW in June at $5067, new planes, new service. Will report back after the flight, if no one gets there before me