Scott Morrison has sent a public message to the online retail behemoth Amazon that it will not get a special deal in Australia, after the company said local consumers would be blocked from purchasing through its global websites.
Amazon announced this week it would not ship overseas goods to Australian customers after new GST rules that target international retailers come into effect in July, restricting Australian purchases to their local operation, which launched last December.
Amazon’s local outlet has underperformed since its launch. Initial prices were criticised for being far too high compared with local competitors and with the company’s international sites.
The treasurer told reporters in Sydney on Friday he found it hard to believe Amazon was incapable of working out a technological solution “when it comes to the simple application of a sales tax on their products sold in Australia”.
“They face different sales tax and VAT rates around the world – in the UK and Canada – and they can manage that. But in this case they say they can’t,” Morrison said on Friday.
“I have a simple message. If you are selling things in Australia, it is subject to tax. You don’t get a special deal because you are a big company or multinational. We won’t let that wash with this government.”
Morrison also blasted Labor for “whingeing when it comes to Amazon paying tax in Australia”.
“Whose side is Bill Shorten on? Amazon or Australia?”
Earlier this week Labor’s shadow assistant treasurer, Andrew Leigh, characterised Amazon’s ban as “an utter embarrassment” for the government.
“Less purchasing choice means higher prices for Australian consumers at a time when they are struggling with record low wages growth and cost of living pressures,” Leigh said.
The treasurer said one of the reasons the government was intent on lowering the company tax rate was to ensure that local retailers were able to compete with international online retailers.
