On the Australian app store it is $129.99. The Australian market is small enough that it's unlikely to be worth optimising for but I though I'd mention it all the same.

(For the curious AU $129.99 is about US $121 at the moment.)

Australia has been one of our best markets for the app. Perhaps a 3 digit price is better :)

Does the Australia app store include VAT (or equivalent) that can be claimed back by businesses?

Yes it includes GST (10%) and that can be claimed back.

Also it's not uncommon to soft-launch apps in Australia before the US and the rest of the world as a large scale public test. (The market is considered by some to be very similar to the US.) So it might makes sense to roll a different line just for Australia. Maybe. Just throwing the idea out there :)

Yes, the price to Australians will always include 10% GST (VAT equivalent)