Australian bookstores seek tax breaks, vouchers to survive discount wars

Australian bookstores are fighting for survival, facing intense pressure from aggressive discounting by supermarkets and online sellers. This has led to a significant decline in their numbers, with the Australian Booksellers Association reporting only 600 bookstores remaining, down from 895 in 2001. Analysis suggests the number has halved in the decade leading up to 2023, prompting urgent calls for government support.

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The film industry has tax breaks – so why can’t we have tax incentives for the book trade? It could help independent booksellers with rents, wages and ancillary costs.

Industry advocates are urging the government to implement measures such as tax breaks, student book vouchers, and potentially price controls. Katherine Day, a publishing expert from Melbourne University, suggests tax offsets similar to those offered to film producers could help independent booksellers with costs like rent and wages. She also proposed removing the 10% goods and services tax on educational and children's books.

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Bookstores are community hubs – they put on a lot of events and give back to the community.

The Australian Booksellers Association is also advocating for tax offsets to cover operational costs and for governments to consider providing book vouchers for school students. Association head Susannah Bowen emphasizes the vital role bookstores play as community hubs, hosting events, promoting literacy, and supporting local authors. However, these community-focused businesses struggle to compete with the deep discounts, sometimes up to 75%, offered by large online retailers and department stores, which are often willing to absorb losses on individual sales.

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Running a bookshop is extremely challenging at the moment. They are facing competition from discount department stores and online global giants that sell books at deeply discounted rates.