Menu
Amazon.com’s decision to block Aussie buyers a “warning” for NZ

Amazon.com’s decision to block Aussie buyers a “warning” for NZ

Move in response to changes to Australia’s Goods and Services Tax (GST)

Amazon’s decision to block Australian shoppers from its international online marketplaces, and instead redirect them to its Australian site, could have repercussions in New Zealand.

The move, in response to changes to Australia’s Goods and Services Tax (GST), highlights the “peril” of the New Zealand Government’s plan to introduce its own “Amazon tax” locally.

That’s according to the New Zealand Taxpayers’ Union, in conjunction with sister organisation, the Australian Taxpayers’ Alliance.

“The Australian Government’s online shopping tax denies shoppers and families the same consumer choice available to billions of shoppers worldwide,” said Satya Marar, director of policy at Australian Taxpayers’ Alliance, and currently on secondment in New Zealand.

“If this happens in New Zealand, Kiwis will be denied access to about 500 million products, most of which are unavailable locally. So instead of creating a level playing field, it only harms consumers.”

As reported by sister publication ARN, the move comes after Australia’s Parliament last year passed new legislation that will see online retailers compelled to collect GST from Australian customers on overseas purchases worth less than $1,000.

Specifically, the new legislation amends the law to extend GST to low value imports of physical goods imported by consumers, a large proportion of which fall into the IT and technology categories.

Suppliers with an Australian turnover of $75,000 or more in a 12 month period are required to register and charge GST under the plan.

“Last year, an Australian senate inquiry was told that the online shopping tax would not make Australian retailers competitive, would not raise a significant amount of revenue and that the cost of implementing the tax would force major online platforms to exit the market or cease serving Australians entirely,” Marar added. “Now we see these consequences in action.”

“New Zealand faces the same risk as it introduces its own Amazon tax. The Government wouldn’t need to assist domestic retailers with taxes on overseas competitors if it addressed local pressures such as zoning laws, strict labour regulations and red tape.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags amazonamazon.com

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments