The National Retail Association (NRA) has said that Amazon’s decision to block Australian shoppers from their US and UK websites is proof that local retailers can compete with the online giant when operating on a level playing field.
The new GST laws will require any overseas business with a turnover greater than $75,000 to pay GST on all good sold, including items purchased under the low-value threshold of $1,000.
NRA CEO Dominique Lamb said that the decision is a direct result of the new GST laws to take effect from July 1.
“The NRA has long advocated for changes to the GST for online purchases as we didn’t believe that the arrangements in place were fair,” Ms Lamb said.
“Australian retailers were getting the rough end of the pineapple compared with overseas competitors and the new laws to come into effect from July 1 will bring that to an end.
“Amazon’s announcement demonstrates that Australian retailers are more than competitive with international rivals when operating on a level playing field.
“Large overseas retailers have been receiving an unfair advantage over local businesses, but that will soon end when they are forced to pay GST on items shipped into Australia."