Online shoppers to pay more for overseas goods

If you have an online shopping habit beware because the cost of goods delivered from overseas is likely to go up by 10 percent.

From today, international businesses now need to account for GST.

Online juggernaut Amazon is now blocking Australians from buying on its international sites - limiting local customers to its smaller Australian website.

Previously, GST had only been charged on overseas products worth more than $1000.

Last year, the Federal Government passed new legislation that extends the tax to all imported goods, regardless of  the price.

A 2018 report by Australia Post revealed that Australians spent more than $21 billion on online purchases last year, which was a 19 percent increase on the previous year.

By 2020 they predict one in 10 purchases will be made online. 

With fashion, beauty, homewares and books being the biggest drawcards, delivery figures show residents in Liverpool, Campbelltown and Gosford are proving to be some of the biggest consumers online.

Australia’s retail sector is worth more than $300 billion and online sales make up almost seven percent of that.

Whether the new tax on overseas purchases affects this number, time will tell.