"We have taken this step to provide our customers with continued access to worldwide selection and allow us to remain compliant with the law which requires us to collect and remit GST on products sold on Amazon sites that are shipped from overseas", the email read.
New rules require internet retailers like the American behemoth to collect a 10 percent goods and services tax on everything bought from overseas sites from July 1, including under the current tax-free threshold of Aus$1,000 (U.S.$760).
Just how the world's overseas online retail giants would react to Australia's new (and controversial) GST rules had since been confined to the realm of speculation. until now.
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.
Amazon's new restrictions may boost visits to Australian website, which been criticised for a relatively small product range and higher prices since it began taking orders in December.
Amazon said Australian customers will still be able to buy products sold by Amazon US on the Amazon Global Store.
Amazon closing its global stores to Australians to avoid paying GST is disappointing but Treasurer Scott Morrison is promising there will be no exemptions.
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A web page featuring Amazon's Australian URL is pictured in this photo illustration April 20, 2017.
"This isn't an anti-trade move by the Australian government", he said.
Labor's digital economy spokesman Ed Husic said the treasurer should have sat down with Amazon and other retailers earlier to talk through the changes. "That tax revenue is used to fund essential services", the spokesperson said.
Amazon has also announced a new "global store" section of its site, which is said to give Australian customers access to 4 million additional products that were previously only available in the US.
A Productivity Commission inquiry concluded that given the decision to collect GST on low value imported goods, "the legislated model is the most feasible among the imperfect alternatives at this time".
"A level playing field will help Australian businesses grow and create more jobs and opportunities".