Australians could spend an extra $583 million on online purchases per year following the introduction of a new GST on products worth less than $1,000 purchased from online overseas retailers.
According to research from Finder, 73% of Australians made a purchase that would have been affected by the new GST over the past two years.
The average shopper spent $80 per purchase at an average of five times per year representing an estimated $5.8 billion in international sales over the past 12 months.
The predictions of a $583 million increase were calculated with the expectation that some companies would pass the tax completely onto the customers in the coming months.
The report highlighted overseas fashion retailers such as ASOS, Boohoo, Net-a-Porter and Marks & Spencer as sites that could be heavily affected by the change in legislation.
Finder researcher Bessie Hassan said prices could go up as overseas businesses cope with the change.
“It’s unclear which retailers will absorb the tax, which will bump their prices up or which will stop shipping to Australia altogether.
“Australians love shopping online so it’ll be interesting to see whether this tax deters some from spending with overseas retailers.
“Others might turn to local stores instead, which would give the retail industry a much-needed boost.”