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| Amazon said Australian shoppers wanting to use its global platforms will instead be directed to its smaller Australian site |
US internet giant Amazon will block Australian shoppers from its international websites to counter new tax laws on online purchases, it announced Thursday.
New rules
require internet retailers like the American behemoth to collect a 10 percent
goods and services tax on everything bought from overseas sites from July 1,
including under the current tax-free threshold of Aus$1,000 (US$760).
As a
result, Amazon said Australian shoppers wanting to use its global platforms
will instead be directed to its smaller Australian site, which offers much less
for sale.
Amazon
reportedly baulked at the massive administrative burden of tracking GST from
all overseas transactions.
"While
we regret any inconvenience this may cause customers, we have had to assess the
workability of the legislation as a global business with multiple international
sites," it said in a statement.
The
retailer said it would compensate by opening a "global store" for
Australians, adding an extra four million items previously available only on
its American website.
"This
will allow us to provide our customers with continued access to (our)
international selection and remain compliant with the law," it said.
But even
with the changes, the number of products available will be a fraction of what's
on sale globally.
The new tax
rules were brought in after years of lobbying by struggling local retailers,
which have to apply GST to all online and store sales,
Low
consumer confidence and tepid wage growth have also hit traditional brick and
mortar retail operations.
Amazon only
launched a local Australian site last December, shipping from a warehouse in
Melbourne with another planned in Sydney.
It had
around Aus$1 billion in sales from Australia annually through shipping from
overseas ahead of the launch, according to Morgan Stanley analysts.
Treasurer
Scott Morrison said the new laws "level the playing field for Australian
businesses".
"The
government doesn't apologise for ensuring multinationals pay a fair amount of
tax here in Australia," he said.
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