Amazon to block Australians from its United States website

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From July 1, Amazon will redirect local shoppers trying to visit the likes of Amazon.com and Amazon.co.uk to its much smaller Australian site, thwarting those who enjoy the lower prices offered overseas.

From 1 July, when Australia's new GST regulations kick in, Australian consumers shopping on Amazon global sites will be redirected to the local Australian site. The GST will impose a 10% fee for all online goods imported into Australia, worth less than A$1,000 ($756). A loophole in tax regulations, however, means that the GST is now applied only to items purchased from overseas retailers if they are worth $1,000 AUD or more, which many local companies argued gave Amazon, eBay and other overseas competitors an unfair advantage.

The retailer said it would compensate by opening a "global store" for Australians, adding an extra four million items previously available only on its American website.

"This selection is in addition to the more than 60 million products that are already available on amazon.com.au across 23 categories, including books, fashion, toys, and electronics".

eBay also stated its case against the Bill which applied GST to overseas sales.

Based on our assessment, we will redirect Australian customers from our worldwide sites to amazon.com.au where they can shop for products sold by Amazon US on the new Global Store, available today.

In a statement about the change, Amazon said it regretted "any inconvenience this may cause customers".

The change to Amazon's website traffic, is being communicated to Amazon's worldwide customers with the company stating that from the 1st of July Aussie visitors to Amazon's global.com site will be redirected to the Australian.com.au site instead.

Australian users weren't happy with their government's decision, and are calling the GST as the "Amazon tax".

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

The move comes after the Australian government has expanded a local tax named the Goods and Services Tax (GST) to online goods shipped into the country.

"A level playing field will help Australian businesses grow and create more jobs and opportunities".

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