Over Half of Australia’s Bookshops Closed Within a Decade. Should the Government Help?

Why It Matters

The survival of independent bookshops underpins Australia’s publishing ecosystem and limits community access to diverse literature, making policy action a cultural and economic imperative.

Key Takeaways

• 13 independent Australian bookshops closed in past year.
• Bookshop count fell 49% from 2013 to 2023.
• France caps book discounts at 5% under fixed pricing.
• Proposed tax offset would rebate rent, wages, Australian titles.

Pulse Analysis

The independent bookshop landscape in Australia has entered a period of rapid contraction. Between 2013 and 2023 the total fell from 2,879 to 1,457 stores, a 49% drop, and the past twelve months alone saw at least 13 closures, including long‑standing venues such as Perth’s Boffins Books (37 years) and Melbourne’s Thesaurus Booksellers (nearly 50 years). Analysts point to soaring commercial rents, aggressive discounting by department chains, and the convenience of Amazon as the chief culprits. Beyond economics, these shops serve as cultural hubs where readers discover new voices and local authors gain exposure, a function that directly sustains the broader publishing sector.

European experience offers a useful benchmark. France has maintained a fixed‑price regime since 1981, limiting discounts on print titles to 5% and extending the rule to e‑books in 2011. The policy correlates with a higher density of bookshops and steadier sales volumes, while keeping average consumer prices relatively stable. Italy’s 2011 adoption of a 15% discount cap produced mixed results: overall book prices rose modestly, yet the market diversified with a broader range of titles beyond best‑sellers. These cases suggest that price controls can preserve retailer margins without dramatically inflating costs for readers, provided the caps are modest.

Australia is weighing similar levers. The Australian Booksellers Association proposes a Bookshop Tax Offset that would rebate core expenses—rent, wages, and purchases of Australian‑authored titles—mirroring tax incentives that have bolstered the film industry. A GST exemption on books, akin to the UK’s treatment of certain children’s and reference titles, could further lower consumer prices and encourage reading. With the average trade paperback now around A$36.99 (approximately US$24), modest policy tweaks could keep books affordable while giving independent retailers a viable financial footing. Careful design will be essential to avoid the price spikes seen in Italy, but targeted relief appears a pragmatic path to preserving Australia’s literary culture.