Perth Voice Interactive

The arrival of internet behemoth Amazon’s Australian online store has local bookshop owners screaming for a level playing field on GST.

Unlike books bought in local shops, items bought on Amazon’s Aussie portal are not subject to GST nor other importation restrictions that affect prices and delivery times.

In the US, Amazon sells one of every two books sold online, and is the number one online bookseller in most countries it operates in. Its dominance of the ebook market is even higher, accounting for between 70 and 80 per cent of all US sales.

Elizabeth’s Bookshop co-owner Harry Schmitz says customers may get a short-term buzz from lower prices but says there will be real long-term impacts on the Australian economy

“How many local Australian jobs will be generated by the launch of Amazon’s Australian website and how much money will the government miss out in non-levied GST,” he asks.

“This website is another impediment to people visiting local bricks and mortar shops.

“I believe it’s another nail in the coffin for high street book sellers in Australia.”

He wants the Abbott government to follow France’s lead: In October, French MPs passed a law to prevent Amazon from combining delivery with a five per cent discount on its books.

“This website is another impediment to people visiting local bricks and mortar shops.”

Since 1981 French law has fixed book prices so readers pay the same whether they buy online, from a high street chain, or from a small bookseller. Extensive discounting is banned.

Last year, Borders shut its doors in Australia and Angus & Robertson scaled back to a handful of outlets.

Dymocks managing director Steve Cox is also calling for the same GST rules to apply to both online and real world sellers.

“Australian stores can thrive and compete with the best of international competitors, but the playing field needs to be even for both sides,” he says.

“GST is levied on books in this country, but not collected on overseas purchases—this needs to change.

“Australian retailers are restricted by parallel importation restrictions that negatively impact on our ability to get books to customers in the fastest time and at the best possible price, and this needs to change also.”

Amazon’s Australian website currently only sells ebooks for its proprietary Kindle reader. Its European and US sites sell physical books for home delivery, as well as a plethora of goods, including DVDs, electronic equipment and CDs. In some countries, Amazon also sells groceries online with home deliveries.

by STEPHEN POLLOCK