Researchers Call for Australian Fast Fashion Tax
Researchers urge the federal government to tax ultra-fast fashion as Temu and Shein rapidly expand their share of the Australian market.
Updated on Nov. 3, 2026 in Fashion
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Should the Federal Government tax ultra-fast fashion items like Temu and Shein purchases?
Researchers have called on the Australian Federal Government to introduce a fast fashion tax, citing the rapid expansion of Temu and Shein in the Australian market. The call follows France's 2025 legislation to tax ultra-fast fashion items.
Why it matters
Researchers say Australian brands need government support to compete with ultra-fast fashion retailers, and some local fashion labels have already been forced to close. Fewer than three per cent of Australia's fashion industry is manufactured locally.
Three ultra-fast fashion companies could control about 50 per cent of the Australian online market by 2030, while less than three per cent of Australia's fashion industry is manufactured locally. Australians discard over 300,000 tonnes of clothing each year.
The players
Temu
Temu is a Chinese-owned online marketplace known for low-priced products and rapid growth in international markets.
Shein
Shein is a China-founded online fast fashion retailer that has expanded rapidly across global markets, including Australia.
The details
The proposed French model adds charges to ultra-fast fashion items, with an estimated 5 euros added to each garment. Australia is one of the biggest consumers of ultra-fast fashion per capita, with the average Australian buying around 55 clothing items per year.
Timeline
2025: The French Senate passed legislation to tax ultra-fast fashion.
September 2025: France added penalties and fines to its ultra-fast fashion measures.
3 November 2026: Researchers publicly called for an Australian fast fashion tax.
2030: Projected date by which three ultra-fast retailers could control about half the online market.
Industry Shift
Researchers are pointing to France's 2025 legislation as a template, with its proposed charges adding about 5 euros to each garment. The Australian push comes as Temu and Shein expand their share of the domestic market.
Shoppers buying low-cost clothing online may see prices rise if a fast fashion tax is introduced, following the French model that adds charges to ultra-fast fashion items. Buyers may wish to consider how often they purchase, as Australians buy around 55 clothing items a year.
The takeaway
Consumers who buy frequently from ultra-fast fashion retailers may find that any future fast fashion tax raises the cost of each item, so comparing purchase frequency and garment quality can help manage spending.
Further reading
For more on the retail trends behind this push, explore Fashion coverage across the Australian market.
Source note: This article includes information reported by 7NEWS.
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Should the Federal Government tax ultra-fast fashion items like Temu and Shein purchases?
