Calls for Australia to place tax on fast fashion brands like Temu, Shein

A call has risen for Australia to follow France’s lead and place a tax on fast fashion brands and marketplaces such as Temu and Shein.

The French senate, by a vote of 337 to one, recently approved a proposed tax of at least €5 ($8.90) on items from fast fashion companies with low environmental performance.

This minimum will rise to €10 ($17.80) by 2030.

The goal is to motivate the commerce giants, and the rapidly growing fast fashion industry, into adopting stricter environmental standards.

It’s a world first, and there are calls for Australia to be second.

The Institute said fast fashion items were often manufactured using high volumes of polyester, a plastic, fossil fuel-derived fabric.

Many reportedly end up in landfill within 12 months of purchase.

“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 that is often worn just a handful of times before ending up in the bin,” the institute’s circular economy and waste program director Nina Gbor said.

“We should now implement a tax that’s big enough to change people’s shopping behaviour.

“The revenue raised could be invested in incentives which support Australia’s nascent textiles industry and a circular economy by encouraging consumers to reuse, repair and recycle clothing.”

9news.com.au has contacted Temu and Shein for comment.

In a statement to the BBC following the French senate vote, a Shein spokesperson said the law would “worsen the purchasing power of French consumers, at a time when they are already feeling the impact of the cost of living crisis”.

Temu and Shein, leading lights of the “fast fashion” industry, are both e-commerce outlets based in China.

Temu defines itself as an online marketplace rather than a brand, and does not manufacture its own products.