From that date, Australia will impose a 10 percent consumption tax on online retailers for goods bought from overseas sites and shipped to Australia. The change will be put into effect to charge GST on "low value imported goods" as of July 1st according to the ATO, and it seems Amazon is not keen to fall afoul of the Australian government.
In a statement issued to the Good e-Reader, Amazon said it regretted the move and the inconvenience to customers accustomed to visiting Amazon's global online stores.
In an email to customers today, the company said from 1 July it would redirect Australian shoppers from its worldwide sites to amazon.com.au where products sold by Amazon US will be available on the new global store.
Called the "Amazon tax", the new policy was introduced following concerns about the impact of Amazon and other large overseas e-commerce businesses on Australian retailers, who have to apply GST to all products they sell.
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"As a result of changes to Australian GST law on 1 July, worldwide shopping options for Australian customers will change".
New Zealand had also already applied GST to digital services from offshore, such as Netflix in 2016.
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The global store has more than four million items, however Amazon US has 480 million products.
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"This will allow us to provide our customers with continued access to (our) worldwide selection and remain compliant with the law", it said.
Amazon is launching a global store accessible to Australian customers, where products from its retail site will be available.
According to the The Sydney Morning Herald, Amazon's USA site provides access to roughly 500 million items, as opposed to the Aussie version, which features around 60 million products.
Treasurer Scott Morrison said the new laws "level the playing field for Australian businesses".
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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".