The new 'daigou' supermarket chain sending Aussie products to China
A new supermarket chain listed on the Australian stock exchange is set to revolutionise the industry, amid concerns it encourages shoppers to dodge Australian tax laws.
Forget Aldi and Costco - supermarket chain AuMake International is designed for the Chinese shopping phenomenon known as "daigou" where shoppers purchase premium Australian products to send to China.
One single store sends 50 tons of Aussie products to China each month and so far 50 million Chinese buyers have purchased goods to send to customers overseas.
By making each package less than 10kg, they don't need to register as an exporter or pay levies.
Analysts estimate daigou traders are dodging $1 billion a year in tax by not declaring income and there are concerns the business model is sidestepping Australian tax laws.
"All Australian Chinese are daigou... they can send anything back to China anytime," Aumake founder Joshua Zhou told 7 News.
The company currently has five daigou supermarkets up and running, and will have 10 by Christmas.
Across Australia there are 1,500 daigou shops, with more springing up every day.
Trade Minister Steve Ciobo warns tax-dodgers will face serious consequences if they are caught.
"Anyone who tries to not declare their income is in breach of the law and will have the book thrown at them," he said.
The Chinese Government has extended approval for daigou imports for another two years.
