Wednesday 12th Dec, 2018

Amazon blames new tax laws for decision to stop shipping overseas purchases to Australia

Photo: Shutterstock
Photo: Shutterstock

ONLINE shopping giant Amazon has announced it will stop shipping overseas purchases to Australia from 1 July following the introduction of new federal laws.

The laws force overseas businesses to register with the Australian Taxation Office to collect GST on goods sold, including on items bought under the current low-value threshold of $1000.

In an email to customers, Amazon regretted “any inconvenience this may cause” and indicated it would redirect Australian customers to the website.

Treasurer Scott Morrison has told national media he stood by the laws and that they would help create a “level playing field” for Australian businesses.

Freight and Trade Alliance director Travis Brooks-Garrett said the laws were not perfect but ecommerce platforms were moving to comply.

“FTA provided expert evidence to the Productivity Commission Inquiry into the collection of GST on low value imported goods. It was clear from that process that the Treasury Laws Amendment is not perfect and would create serious challenges for the e-commerce platforms servicing Australia,” Mr Brooks-Garrett said.

“However, with the legislation already passed, FTA is committed to working with our members and the ATO on industry education and compliance. While Amazon has taken this position, other ecommerce platforms are building the infrastructure to comply.”

Mr Morrison, meanwhile, told News Corp the laws would help boost jobs growth.

“A level playing field will help Australian businesses grow and create more jobs and opportunities,” Mr Morrison was quoted as saying.

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