It may also benefit Amazon's main rivals, from California-headquartered online market eBay to smaller Australian merchants which had campaigned to have the GST apply to all goods shipped from overseas.
In addition to allowing Amazon's U.S. arm to bypass complicated GST obligations, it also forces more customers to use the Australian service, therefore boosting its sales performance.
Starting in July, Australians will be blocked from ordering items on Amazon's United States site.
We've been following the intent of the Australian government to add a charge to imported parcels whose value falls beneath the previous $1,000 threshold for some time.
That's the date new GST laws come into effect Down Under, which stipulates that Australia's national 10 percent tax be applied to all online purchases.
Australian shoppers using Amazon's worldwide site will be unable to place orders, with the retail giant stopping shipping due to new GST rules.
Thankfully, global third-party sellers' storefronts will still be accessible from the Australian Amazon site, although shipping costs on those items will be at the discretion of individual sellers, rather than Amazon itself.
The Australian version launched late previous year, with some 60 million products available.
Amazon has today announced that from July 1st, Australian shoppers will no longer be able to use Amazon.com (as well as all of the other overseas Amazon sites).
"Amazon Global Store will allow Australian customers to shop on amazon.com.au for over 4 million items that were previously only accessible on amazon.com".
The online giant offers up to 500 million products on it's primary site now, in contrast to the measly 60 million that the Australian site offers.
"This isn't an anti-trade move by the Australian government", he said.
"We have had to assess the workability of the legislation as a global business with multiple worldwide sites", an Amazon spokesperson said.
"A level playing field will help Australian businesses grow and create more jobs and opportunities".