There is a growing call for Australia to enact a tax on fast fashion retailers, drawing inspiration from recent legislation in France. The French Senate approved a tax of at least €5 (approximately $8.90) on items sold by fast fashion brands known for poor environmental practices. This figure is set to increase to €10 ($17.80) by 2030, with the aim of holding these companies accountable for their ecological impact and encouraging them to adopt more sustainable practices.
As the first country to implement such a tax, France is setting a precedent that advocates in Australia are hoping to follow. A report from The Australia Institute revealed that Australians are the leading contributors to fast fashion waste per capita, which further emphasises the need for action.
Fast fashion is notorious for its heavy reliance on polyester, a synthetic fabric derived from fossil fuels. Due to the disposable nature of many fast fashion items, numerous garments are discarded within a year of purchase. Nina Gbor, director of the Institute’s circular economy and waste program, highlighted the urgency of addressing waste at its source. She argued that taxing low-quality, cheaply produced clothing could help protect the environment and support local fashion businesses.
Advocates suggest that a sufficiently high tax could alter consumer behaviour and encourage more responsible shopping habits. The revenue generated from this tax could be reinvested into Australia’s emerging textile industry, fostering a circular economy that promotes the reuse and recycling of clothing.
Meanwhile, companies like Shein and Temu, prominent players in the fast fashion market, have faced criticism regarding their environmental impact. In response to the French tax proposal, a Shein spokesperson warned that such measures could diminish consumers’ purchasing power during a time of economic strain.
As these discussions unfold, Australia stands at a crossroads, with the potential to significantly shift its approach to fast fashion and its environmental repercussions. Implementing a fast fashion tax could pave the way for more sustainable consumer practices and help mitigate the substantial waste generated by the industry.