Treasurer responds to Amazon's block on Australian consumers

Treasurer responds to Amazon's block on Australian consumers

Treasurer responds to Amazon's block on Australian consumers

The change to Amazon's website traffic, is being communicated to Amazon's worldwide customers with the company stating that from the 1st of July Aussie visitors to Amazon's site will be redirected to the site instead.

Currently GST is applied to items bought overseas that cost more than $1000. The change will be put into effect to charge GST on "low value imported goods" as of July 1st according to the ATO, and it seems Amazon is not keen to fall afoul of the Australian government.

"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 worldwide sites", an Amazon spokesman said, adding that the firm was taking the measure to comply with the legislation and not to avoid paying tax.

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.

For now, the GST change looks like a win for local businesses, which will have an easier time retaining shoppers while Amazon builds out its Australian inventory.

Australians will be able to access their new global store which has four million products.

Australian shoppers using Amazon's global site will be unable to place orders, with the retail giant stopping shipping due to new GST rules.

Amazon is launching a global store accessible to Australian customers, where products from its retail site will be available.

Amazon says its Australian unit offers 60 million products in 23 categories, compared to the more than half a billion products on its USA site.

"The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia. That tax revenue is used to fund essential services".

The ABC reports that, in an email to customers today, Amazon said from 1 July it would redirect Australian shoppers from its worldwide sites to where products sold by Amazon US would be available on the new global store.

"A level playing field will help Australian businesses grow and create more jobs and opportunities".

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