Under new GST collection laws, online retailers will be forced to apply the 10 percent GST to goods purchased on worldwide sites and shipped to Australia.
This coincides with GST changes where online retailers will have to apply the 10 per cent GST to goods bought from overseas sites and shipped to Australia, where now the tax only applies to imports of goods above $1,000.
While we regret any inconvenience this may cause, from 1 July we will be redirecting Australian customers from our worldwide Amazon sites to amazon.com.au where you can shop for products sold by Amazon US on the new Amazon Global Store, available today.
Amazon only launched a local Australian site last December, shipping from a warehouse in Melbourne with another planned in Sydney.
In a statement about the change, Amazon said it regretted "any inconvenience this may cause customers".
The retail giant said it would subject Australians to the process known as "geoblocking" from July 1, when a 10 percent Goods and Services Tax (GST) applies to imported online goods worth less than A$1,000 ($756).
"This isn't an anti-trade move by the Australian government", he said. As a placation, Australian customers will also have access to 4 million products that were previously available only on Amazon.com through its new Global Store.
The country decided in 2015 to make the change, but since then an election, the replacement of its treasurer, a new prime minister, and lobbying against the move delayed its implementation until 2017.
"I've been pushing for this for years", he said, adding: "Retailers like Amazon and their subsidiary the Book Depository have been able to avoid collecting G.S.T. from Australian customers whereas we are legally bound to collect, so immediately we are at a disadvantage".
At 2:22pm Thursday, shares in local e-commerce site Kogan.com were up 11 cents, or 1.2 per cent, at $9.18, while shares of electronics retailers JB Hi-Fi and Harvey Norman were up about 2.3 per cent and 1.0 per cent, respectively.
The move, which attempts to level the playing field between local and global retailers, has posed issues to Amazon's worldwide selling scheme.
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