Business School

News

31 May 2018

Blocking Australian shoppers to US website Amazon to avoid paying the GST on transactions will “blow up” against the online retailing giant, says QUT consumer expert Gary Mortimer.

Associate Professor Mortimer said the decision by Amazon to redirect Australian customers from its global store would do little to change domestic consumers online trading.

He said $25 billion was spent by Australians on online shopping domestically each year, with 80 per cent spent on domestic retailer websites.

“The ban by Amazon will have very little impact on Australian consumers and online shopping,” Professor Mortimer said.

“This decision may see domestic shoppers decide to go elsewhere to sites like AliBaba and eBay.”  

From July 1, new GST laws require online retailers to apply the 10 per cent GST to purchases bought from international websites.

Currently, only goods purchased overseas for more than $1,000 had the GST applied.

Professor Mortimer said Amazon would redirect Australian shoppers from its international sites to amazon.com.au once the new GST laws take effect.

The e-commerce retailer began as a bookstore in the in the 1990s in Seattle and has since expanded into more than 30 countries.

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