Andy Brownbill/AAP Over half of Australia’s bookshops closed within a decade. Should the government help? Published: June 5, 2026 11.36am AEST
In the past year alone, at least 13 independent bookshops have closed in Australia. Some have operated for decades. Perth’s Boffins Books recently announced it would close after 37 years, citing rising costs and “shifting CBD dynamics”. In February, Thesaurus Booksellers in the Melbourne suburb of Brighton closed after nearly 50 years, citing rising rent and operating costs. And late last year, The Bookshop in Sydney’s Darlinghurst closed due to “financial pressures”, after 43 years.
In the decade from 2013 to 2023, the number of Australian bookshops more than halved: from 2,879 to 1,457 – and continues to decline. Overall financial pressure is one reason. Competition from discount department stores, such as Kmart and Big W, as well as online giants such as Amazon, is another. Local bookshops account for fewer than half of print books sold in Australia each year, the Australian Booksellers Association reported in its submission to Australia’s National Cultural Policy last month.
For die-hard book lovers, the independent bookshop is a special place: to browse, get expert recommendations on all things bookish, and engage in events that connect readers more deeply to books and community. As novelist Charlotte Wood has said: “Bookshops are the safety vaults for the seeds of our country’s cultural and intellectual life.” The health of Australia’s independent booksellers is directly linked to the health of Australian publishing – and the availability of Australian books to readers. With fewer people reading recreationally, preserving dedicated bookshops where readers can discover new books is important.
Price fixing in Europe
There are things the government could do to help, such as price regulation, practised successfully in Europe, and tax discounts, a form of support Australia already gives its film industry. Fixed book pricing is common in Europe, where books are formally exempted from European Union competition rules, as “objects of culture”. This allows publishers and their distributors to determine the retail price of books. France has capped discounts of print books since 1981 at 5%. Since 2011, this has applied to ebooks too. The number of bookshops in France far exceeds that in the United Kingdom, where price regulation was abolished in 1997, deemed restrictive and anti-competitive. Countries with fixed book pricing have higher book sales – and the effect on average book prices is typically minimal. When they can’t compete on price, booksellers are motivated to provide other services.
Results, however, can be mixed. In Italy, fixed book pricing has existed since 2011, with discounts capped at 15%. A 2025 study showed book prices rose overall as a result. But while the discount cap had no effect on the number of books published, more kinds of books were sold, with less focus on bestsellers. In Italy, fixed book pricing has meant more expensive books – but more kinds of books sold.
The cost of cheap books
Last year, Booker Prize-winning author Richard Flanagan called for the return of fixed-price policies in Australia – which abolished its scheme in 1972. He claimed discount department stores “don’t really care about books, they just use books as a way of dragging customers through the doors”. They focus on providing cheap bestsellers, often sold at a loss. This means less variety of books. In 2024, a petition with 600 Australian signatures was presented to federal parliament asking for regulation of book prices. Andrew Leigh, Minister for Productivity, Competition, Charities and Treasury, acknowledged the pressures high discounts were having on independent booksellers – and the importance of books and reading. But no solution was forthcoming.
One hurdle is the rising cost of producing books. In a fairly stable market, book prices might remain consistent. But without competition, price regulation might lead to costs being passed on to book buyers, as has happened in Italy. Australian book prices are currently reasonable: for example, the average trade paperback, which cost around A$29.95 in 2010, is now around $36.99. If it rose with inflation, it would now cost at least $44.66.
Could tax relief help?
The Australian film industry has benefited from a range of tax incentives since 2007, via the Australian Screen Production Incentive. It offers a strong model. In its National Cultural Policy submission, the Australian Booksellers Association has suggested an Australian Bookshop Tax Offset, in the form of a tax rebate on core operating expenses such as wages, rent and purchases of Australian-authored titles. It has also asked the government to look at GST reduction or exemption on books. In 1998, the Democrats, who held the balance of power in the Senate, initially said they would not pass the GST unless books (along with food and tourism packages sold offshore) were exempted. Obviously, this didn’t happen. In the UK, some reference books and children’s books are free of its GST equivalent, VAT, to encourage reading and help families. These essential tax breaks are welcomed by the publishing industry, too, as incentives for early readers.
While rising costs and competition from Amazon and discount department stores are a factor in the decline of Australian bookshops, government has a role to play in stemming it – if it wants to.
