The GST will impose a 10% fee for all online goods imported into Australia, worth less than A$1,000 ($756).
This coincides with GST changes where online retailers will have to apply the 10 per cent GST to goods bought from overseas sites and shipped to Australia, where now the tax only applies to imports of goods above $1,000.
From July 1, shoppers visiting Amazon.com (and other overseas Amazon sites) will be redirected to Amazon.com.au, which launched late a year ago.
The spokesman said customers will continue to have access to Amazon US and other overseas sites on the new global store.
"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".
He said the company 'had to assess the workability of the legislation as a global business with multiple worldwide sites'.
We speculated this might happen back when Amazon Australia was about to launch.
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"This will allow us to provide our customers with continued access to global selection and remain compliant with the law which requires us to collect and remit GST on products sold on Amazon sites that are shipped from overseas".
At issue is the Australian government's long-held (and long-criticised) desire to levy GST on all purchases made from overseas vendors, replacing a policy of taxing only imports priced at more than AU$1,000.
'Australian consumers have become quite accustomed to purchasing from large overseas retailers, Amazon begin the biggest example but also department stores like Nordstrom's, Macy's, and global retailers like ASOS, ' he said.
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.
The tax is created to level the playing field for local retailers like JB Hi-Fi and Harvey Norman, who say worldwide online sellers get a competitive advantage by not having to include GST in their prices.
"A level playing field will help Australian businesses grow and create more jobs and opportunities".