• Written by: James Carey, CA CTA
• 02/03/2026

How to Set Up an Ecommerce Business in Australia as a Foreign Company [2026]

Australia is one of the most attractive ecommerce markets in the Asia-Pacific region, and foreign companies looking to start an ecommerce business in Australia are well positioned to capture a share of a market that now exceeds AUD $63 billion annually. But selling into Australia is not as simple as shipping products and collecting payments. Foreign ecommerce sellers face specific obligations around GST registration, consumer law compliance, privacy requirements, and — depending on the scale of their operations — formal entity registration. This guide covers everything a foreign company needs to know to set up an ecommerce business in Australia in 2026.

Why Australia Is a Prime Ecommerce Market

A large and growing market. Australia's ecommerce market has grown by more than 150% since 2012, with annual growth rates of 5-6% projected through the end of the decade. For foreign companies selling niche or specialised products, the Australian market offers strong purchasing power with less competition than the United States or United Kingdom.

Near-universal internet access. Australia has an internet penetration rate of 97.4%, with over 26 million people online. Smartphone penetration has reached approximately 87%, and mobile devices account for more than 60% of all web traffic. Australian consumers are highly comfortable purchasing online.

A cross-border-friendly consumer base. Around 61% of Australian online shoppers regularly purchase from overseas sellers. Australians are accustomed to cross-border ecommerce and are willing to wait for international shipping when a product meets their needs at the right price.

Mature payment infrastructure. Australia has one of the highest rates of buy-now-pay-later (BNPL) adoption globally, with the BNPL market projected to reach AUD $18.34 billion in 2026. Afterpay, Zip, PayPal, credit cards, and digital wallets like Apple Pay and Google Pay are all widely used.

Stable regulatory environment. The Australian Taxation Office provides clear pathways for GST registration, and the corporate registration process through ASIC is straightforward — particularly when you have a specialist registered agent to manage it.

Do You Need an Australian Entity?

The answer depends on your business model.

Selling directly from overseas (no local inventory or staff). You likely do not need a formal Australian entity. However, you must register for GST if your Australian sales exceed AUD $75,000 in a 12-month period. The ATO offers a simplified GST registration for non-resident businesses in this position — no ABN or ASIC registration required.

Selling through a marketplace (Amazon, eBay). The marketplace operator is generally responsible for collecting and remitting GST on your behalf under the "marketplace facilitator" rule. You may not need any Australian registration if all sales go through a qualifying marketplace, though you should confirm with your platform.

Holding inventory in Australia. If you warehouse stock in Australia — such as using Amazon FBA with an Australian fulfilment centre — the simplified GST registration is not available. You need standard GST registration, which requires an ABN. Depending on scale, you may also need ASIC registration.

Establishing full Australian operations. If your ecommerce business will have Australian employees, a local office, or local customer service, you should register a formal entity — either a branch office or an Australian Pty Ltd subsidiary.

Entity Structure Options

Simplified GST Registration (No Entity Required)

You receive an ATO Reference Number (ARN) rather than an ABN, and lodge simplified quarterly Business Activity Statements. You cannot claim input tax credits, which means you cannot recover GST on any Australian business expenses.

Branch Office (Foreign Company Registration)

A branch office is an extension of your overseas company. You register with ASIC under Part 5B.2 of the Corporations Act, receive an ARBN, and appoint a local agent to accept service of documents. You also need a registered office address. Profits and losses flow through to the parent company, but the parent is liable for the branch's obligations.

Australian Subsidiary (Pty Ltd)

A Pty Ltd subsidiary is a separate legal entity with its own ACN, ABN, and tax obligations. It limits the parent company's liability and provides full access to Australian banking and financial services. You must have at least one resident director ordinarily resident in Australia.

GST for Foreign Ecommerce Sellers

The $75,000 Registration Threshold

If your business makes more than AUD $75,000 in sales to Australian consumers in a 12-month period, you must register for GST. This threshold applies to your total Australian sales — not your global turnover. For non-profit organisations, the threshold is $150,000.

Low-Value Imported Goods (Under AUD $1,000)

Since 1 July 2018, GST applies to low-value goods imported by consumers. If you are a non-resident business selling physical goods with a customs value of AUD $1,000 or less, you must charge 10% GST on those sales (assuming you meet the $75,000 threshold).

Key points:

• Customs value excludes transport, insurance, and customs duty — it is the price paid for the goods themselves.
• GST applies at the point of sale, not at the border. You charge GST at checkout and remit it to the ATO.
• Goods over $1,000 in customs value are subject to GST and customs duty at the border. Your customer pays these charges to Australian Border Force on arrival — the seller does not collect GST on these goods.

Digital Products and Services

If you sell digital products or services — streaming subscriptions, software licences, online courses, or digital downloads — GST applies in the same way. The $75,000 threshold triggers the registration obligation.

Marketplace Facilitator Rules

Electronic distribution platforms that facilitate sales of low-value imported goods or digital products to Australian consumers must collect and remit GST on those sales. If all your sales go through a qualifying marketplace, you may not need to register separately. However, sales through your own website count toward your $75,000 threshold.

BAS Lodgement

Under simplified GST registration, you lodge and pay quarterly on the 28th of the month following each quarter (28 October, 28 February, 28 April, 28 July). Under standard GST registration, you may lodge monthly or quarterly and can claim input tax credits.

Australian Consumer Law (ACL) Compliance

The ACL applies to all businesses that sell to Australian consumers — including foreign businesses selling from overseas. Non-compliance can result in significant penalties from the Australian Competition and Consumer Commission (ACCC).

Consumer Guarantees

Goods sold to Australian consumers must meet automatic consumer guarantees that cannot be excluded or modified by contract. These include:

• Acceptable quality: Goods must be safe, durable, free from defects, and acceptable in appearance.
• Fit for purpose: Goods must be fit for any purpose the consumer makes known, or for which they are marketed.
• Match description: Goods must match the description on your website and packaging.
• Match sample: Goods must match any sample or demonstration the consumer relied on.

Refund and Return Rights

You cannot have a blanket "no refunds" policy — this is illegal under Australian law. If a product has a major failure, the consumer can choose a refund or replacement. If the failure is minor, you can choose to repair, replace, or refund. A "no refund" sign or "all sales are final" statement may itself constitute a breach of the ACL.

Product Safety and Marketing

Certain products must comply with mandatory safety standards or may be banned entirely (such as certain children's products, electrical goods, and cosmetics). Section 18 of the ACL also prohibits misleading or deceptive conduct — your product descriptions, pricing, and promotional claims must be accurate.

Privacy and Data Protection

The Privacy Act and Australian Privacy Principles

The Privacy Act 1988 applies to organisations with annual turnover exceeding AUD $3 million. It contains 13 Australian Privacy Principles (APPs) covering how you collect, use, store, and disclose personal information.

For foreign ecommerce sellers, the critical obligations are:

• Only collect information reasonably necessary for your business functions.
• Provide a clear privacy policy explaining what you collect and why.
• Cross-border data transfers require you to ensure overseas recipients comply with the APPs — you may be held accountable for any mishandling.
• Data breach notification is mandatory under the Notifiable Data Breaches scheme if a breach is likely to result in serious harm.

2024-2025 Privacy Reforms

The Privacy and Other Legislation Amendment Act 2024 introduced a right to erasure (data deletion on request), stricter consent standards (no more pre-ticked boxes), mandatory disclosure of automated decision-making (effective December 2026), and a statutory tort for serious privacy invasions (effective June 2025). These changes bring Australia closer to the EU's GDPR — foreign sellers already compliant with GDPR will find many requirements familiar.

Payment Methods and Logistics

Payment Methods

To maximise conversions with Australian shoppers:

• Credit/debit cards: Visa and Mastercard dominate.
• BNPL: Afterpay is the market leader, followed by Zip. BNPL is the third most popular consumer credit in Australia and can meaningfully increase average order values. BNPL providers are now regulated as credit products from June 2025.
• Digital wallets: Apple Pay and Google Pay are growing rapidly, especially on mobile.
• PayPal: Widely trusted for cross-border purchases.

Shipping and Logistics

• Australia Post handles the majority of international ecommerce deliveries (5-15 business days from most origins).
• International carriers DHL, FedEx, and UPS offer express options.
• 3PL providers in Australia can warehouse your inventory for faster local delivery, but this triggers standard GST registration requirements.

Customs Duties

• Goods under AUD $1,000: Generally exempt from customs duty at the border. GST is collected by the seller at checkout.
• Goods AUD $1,000 and over: Subject to customs duty (typically 0-5%) and 10% GST at the border, paid by the importer.
• Prohibited items include certain food products, plant and animal materials, and weapons — check Australian Border Force requirements.

What Does It Cost?

A foreign ecommerce business needing only simplified GST registration can get started from $450. A full subsidiary with a resident director starts at around $8,000-10,000 per year including registration, resident director, registered office, and compliance.

5 FAQs for Foreign Ecommerce Sellers

Do I need an ABN to sell online to Australian customers?

Not necessarily. If you sell from overseas with no physical presence or inventory in Australia, you can register for simplified GST using an ATO Reference Number (ARN) instead of an ABN. An ABN is only required for standard GST registration or if you register a formal entity with ASIC. If all sales go through a marketplace like Amazon or eBay, the marketplace may handle GST entirely.

What happens if I do not register for GST but exceed the $75,000 threshold?

You are in breach of Australian tax law. The ATO can impose penalties and require you to back-pay GST on sales that should have been taxed. The ATO actively monitors cross-border ecommerce and has information-sharing agreements with other tax authorities.

Does Australian Consumer Law apply to me if I am based overseas?

Yes. The ACL applies to all businesses that supply goods or services to Australian consumers, regardless of where the business is located. The ACCC has taken enforcement action against overseas businesses that fail to comply with consumer guarantees.

Can I use Amazon FBA in Australia without registering a company?

You can use Amazon FBA, but because your inventory is physically in Australia, you cannot use simplified GST registration. You need standard GST registration with an ABN, and depending on scale, you may need ASIC registration. Amazon collects GST on marketplace sales, but you are responsible for your own ABN and GST registration.

How long does it take to set up?

Simplified GST registration takes 2-4 weeks. ABN registration takes 1-2 weeks once ASIC registration (if required) is in place. Full company formation takes 2-4 weeks. Branch office registration takes 4-6 weeks. Working with a specialist registered agent accelerates each process.

Get Started with Your Australian Ecommerce Expansion

Setting up an ecommerce business in Australia as a foreign company requires careful planning around GST, entity structure, consumer law, and privacy. The right approach depends on your business model — whether you are selling remotely, using a marketplace, warehousing locally, or establishing full operations.

Aus Business Register specialises in helping foreign companies navigate Australian business registration, GST compliance, and ongoing regulatory requirements. Whether you need a straightforward GST registration or a full company formation with a resident director, we provide end-to-end support tailored to ecommerce businesses entering the Australian market.

Ready to start selling in Australia?

• Request a quote for your Australian ecommerce setup
• Learn about ABN and GST registration for foreign sellers
• Explore company formation options for your Australian subsidiary
• View our services and pricing

Or call us directly on +61 2 8599 9890 to discuss your requirements with our team.