Amazon geoblocks Australia from USA site as tax change kicks in

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"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 worldwide sites", it said in a statement.

The online retail behemoth announced this week it will block Australians buying goods from overseas.

Amazon announced plans to block Australian users from ordering from its main U.S. store ( and will redirect customers to its local Australian site ( instead.

Amazon is getting a bit of flack this afternoon over its intentions to re-direct Australian visitors to their global site to their Australian arm thanks to upcoming changes to GST on imported goods. The GST will impose a 10% fee for all online goods imported into Australia, worth less than A$1,000 ($756). Amazon has made this move primarily due to new GST rules that will force them to apply a 10% GST to goods purchased on worldwide sites and shipped to Australia.

Amazon says its Australian unit offers 60 million products in 23 categories, compared to the more than half a billion products on its USA site.

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"If multinationals aren't forced to pay their fair share of tax, they will have a competitive advantage over retailers here in Australia, on our own main streets and in our shopping centers". As a placation, Australian customers will also have access to 4 million products that were previously available only on through its new Global Store.

Amazon's new restrictions may boost visits to Australian website, which been criticised for a relatively small product range and higher prices since it began taking orders in December.

An Amazon spokesperson said the change will allow the company to remain compliant with local laws.

Treasurer Scott Morrison said the new laws "level the playing field for Australian businesses".

At 2:22pm Thursday, shares in local e-commerce site were up 11 cents, or 1.2 per cent, at $9.18, while shares of electronics retailers JB Hi-Fi and Harvey Norman were up about 2.3 per cent and 1.0 per cent, respectively.