Will Aussie place tax on fast fashion brands like Temu, Shein?

At AusNewsLanka, we aim to keep the Australian community informed with timely updates.

There's growing pressure for Australia to crack down on fast fashion by introducing a tax on ultra-cheap, low-quality clothing, following France’s bold move to hold major players like Temu and Shein accountable.

In a near-unanimous vote (337 to 1), the French Senate approved a world-first tax targeting fast fashion retailers whose items fall short on environmental standards. The €5 ($8.90 AUD) minimum tax per item is set to increase to €10 ($17.80 AUD) by 2030.

The goal? Push the fast fashion industry to clean up its act, and stop flooding the market with clothes that barely last a season.

Now, many Australians are asking – why not here?

According to a May 2024 report from The Australia Institute, Aussies are the biggest fast fashion consumers per capita on the planet. Most of the clothing we buy is made from polyester, a plastic-based fabric derived from fossil fuels. Shockingly, a large chunk of these garments ends up in landfill within a year of purchase.

Nina Gbor, who leads the institute’s circular economy and waste program, says it’s time to act:

“To protect the environment and Australian fashion brands, we need to drastically reduce waste at the source by penalising brands that mass-produce incredibly cheap, low-quality clothing.”

She’s calling for a significant tax on fast fashion items sold in Australia — big enough to change shopping behaviour. Gbor also suggests reinvesting the revenue into programs that support local textiles industries and encourage Australians to repair, reuse and recycle their clothes.

France's move has sparked some backlash, though. In response to the tax, a Shein spokesperson warned it would hurt consumers already struggling with rising living costs.

But with Temu and Shein dominating the market, and cheap clothes piling up in landfills, many believe the time for bold policy change in Australia is now.

Could Australia be the next to put fast fashion under the microscope? The conversation has definitely started.

More updates to come on AusNewsLanka.