As an avid online shopper, this recent development is disappointing though not entirely surprising. From July 1st, Australian visitors to Amazon.com will be redirected to their Australian website with no choice to shop at Amazon US.
And the reason? Because of our glorious new overseas GST legislation which comes into affect on the very same date.
The changes to the Online Goods Tax now require online retailers to apply the 10 per cent GST to all online purchases shipped to Australia from overseas. It used to be only for items that exceeded AU$1000.
A comment from Amazon courtesy of Reuters:
“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,” an Amazon spokesman said, adding that the firm was taking the measure to comply with the legislation and not to avoid paying tax.
While this redirect will drive traffic to Amazon’s Australian website, it also undermines the very reason people shop online and overseas in the first place. Its not just about price, it’s also about product selection and availability.
Where am I going to buy that nVidia Shield from now?