Australian businesses are missing out on $4.2 billion from Australians every year

Mia Steiber 26 January 2017

australian money pile

This is because Australians are spending that $4.2 billion online with overseas competitors.

Across the online shopping space - including grocery purchases, homewares, furniture, electronics and fashion - a fifth of the money spent goes entirely off-shore. Not even GST is collected on this sum.

While the large majority of grocery purchases are Australian with just 3.2% of grocery dollars heading overseas, the figures show a different picture in other areas of Australian retail.

In the toy category, more than half of the Australian dollars spent online on toys is sent to an overseas business. Similarly, 48% of the money Aussies spend at department stores is heading overseas to companies like Macys instead of homegrown alternatives like David Jones that operate in Australia and employ Australians.

In the fashion space overseas spend makes up a smaller percentage, with 36% of dollars spent with overseas businesses. But given how vibrant and prolific the Australian fashion scene is, we might expect domestic share of spend to be higher.

With this in mind, it is interesting to note that overseas competition is one of the most significant problems for Australian businesses. In fact, a survey conducted by Marks Sattin showed that the second-biggest challenge faced by Australian businesses is overseas competition.

Support Australian businesses

Head to the True Blue Australia Day sale page to find out more.

It is important for consumers to actively choose to shop Australian if we want our retail space to flourish. Making the decision to shop Australian can make a real difference to the survival rate of Aussie businesses and jobs.

For Australians who want to do more to support Australian businesses you can read more about 10 ways to support local companies. Or you can head to the True Blue Australia Day Sale page to learn about which businesses are Australian and access some awesome discounts in honour of Australia Day.

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