- GST comes off your eBook price first
- Paid in Australian dollars, with one New Zealand twist
- Why no minimum payment applies to Australian banks
- US withholding on print books sold on Amazon.com.au
- The treaty rate for Australian authors
- What if you want money outside KDP's list?
- Scams using KDP's name
- So, does KDP work from Australia?
- Frequently asked questions
Yes, Australian authors can be paid through Amazon KDP. According to KDP's payment options page, Australian bank accounts receive direct deposit in Australian dollars from nearly every Amazon store. The IRS treaty table lists Australia at five for royalties, and eBooks sold in Australia carry ten percent GST, which KDP deducts before working out your royalty.
Amazon KDP Australia has a couple of quirks you won't find in the UK or Canada setups, mainly the New Zealand dollar wire oddity and the way GST is handled on eBooks. I've read KDP's own help pages and the IRS treaty table to pull out the Australian details. I'm not a tax adviser, so ask an accountant about your personal return.
GST comes off your eBook price first
Start here, because it changes how you read your royalty reports. KDP's GST help page says eBooks sold to customers in Australia are subject to a 10% Goods and Services Tax. List prices you set for Amazon.com.au already include GST, so you don't add it yourself.
The important line is that KDP deducts GST from the list price before it calculates your royalty on sales in Australia. If you're used to working out earnings from the sticker price, expect the royalty to be calculated on a lower base. If you set a worldwide price on Amazon.com and leave the Australian price alone, KDP converts it to local currency and that converted price includes GST.
Paid in Australian dollars, with one New Zealand twist
KDP's payment options page lists Australia with direct deposit in AUD for Amazon.com.au and nearly every other store, including Amazon.com, Amazon.co.uk and the European stores. Wire and cheque show as not applicable for most of the table. The twist is that for Amazon.ca and Amazon.com.mx the wire column shows NZD, which is the New Zealand dollar.
I'd read that as a quirk in how KDP routes payments for those two stores. If you sell to Canadian or Mexican readers, check your Payments Report and ask your bank how it will treat an incoming payment in New Zealand dollars. KDP doesn't say more than the table does, so I won't guess at fees.
KDP says that where direct deposit is available in the sale currency, you're paid in that currency with no conversion. Otherwise Amazon converts at its own exchange rate, and that rate includes all fees for the conversion.
| What I checked | What KDP and the IRS say for Australia |
|---|---|
| Main payment route | Direct deposit in AUD |
| Amazon.ca and Amazon.com.mx | Wire payments shown in NZD |
| Amazon.com.au wire and check minimum | Listed as Not Available |
| Bank delay | 1-5 business days after the payment date |
| eBook GST | 10% GST, taken off before royalties |
| Print sales on Amazon.com.au | Subject to 30% US tax withholding for non-US persons |
| IRS treaty table | 5 for copyright royalties |
Why no minimum payment applies to Australian banks
KDP's thresholds are only for wire and cheque payments. Its "When will I get paid?" page lists the wire and cheque minimum for Amazon.com.au as not available, and direct deposit has no minimum. Because Australian banks are paid by direct deposit, every royalty is paid out in full once the monthly schedule arrives.
That schedule is the same worldwide. Royalties are paid every month, about 60 days after the end of the month in which the sale was reported. Direct deposit then takes 1-5 business days to show in your account.
US withholding on print books sold on Amazon.com.au
Here's a detail Australian authors often miss. KDP's tax withholding page says royalty payments for print book sales on Amazon.com.au are subject to 30% US tax withholding for non-US persons. The same sentence covers eBook sales on Amazon.com and print sales on Amazon.com, Amazon.co.jp and Amazon.ca.
So even though the buyer is Australian, the US tax rules apply to the paperback royalty. KDP says you may qualify for a reduced rate if your country has an income tax treaty with the United States. The rate that will apply to your payments is shown in your tax profile once you've completed the W-8 review.
The treaty rate for Australian authors
The IRS treaty table lists Australia at 5 in the Copyrights column under Royalties, citing Article 12 and a protocol. That's a reduced rate rather than a full exemption. The IRS also warns that its table isn't a complete guide to every eligibility rule, so check the treaty itself or ask a tax professional.
To claim treaty benefits, KDP says you have to provide a tax identification number. If you have a US one, you must enter it. Otherwise you may enter the income tax number your country's tax authority gave you. KDP also says a W-8 expires on the last day of the third calendar year after you sign it, and a reduced rate falls back to 30% if it lapses.
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What if you want money outside KDP's list?
KDP says PayPal and Amazon Payments aren't available payment options, so your royalty has to go to a bank account on KDP's list. If you also take client payments from abroad, my guide to Payoneer for Australian freelancers covers a separate route for that work. For authors comparing countries, how KDP pays Canadian authors shows a setup where every store pays in the local currency.
And if you want to see where else Amazon can bring in income, my overview of selling on Amazon goes through the main routes.
Scams using KDP's name
Be wary of anyone who asks you to pay a fee to receive royalties or sends a link to "confirm" your bank. Log in through the official KDP site yourself and check the Payments Report there.
So, does KDP work from Australia?
Yes. Australian authors get direct deposit in Australian dollars, no minimum payment and a clear treaty rate. The two things to get right are the GST effect on eBook royalties and the US tax form, because print sales on Amazon.com.au are on KDP's 30% withholding list until your treaty information is in place.
Frequently asked questions
Does Amazon KDP pay in Australian dollars?
According to KDP's payment options page, yes. Australia is listed with direct deposit in AUD for Amazon.com.au and nearly every other Amazon store.
Why does the table show NZD for Amazon.ca and Amazon.com.mx?
KDP's table lists wire payments in NZD for those two stores in the Australia row. KDP doesn't explain the reason, so check your Payments Report and ask your bank how it handles them.
Is there GST on eBooks in Australia?
KDP says eBooks sold to customers in Australia are subject to a 10% Goods and Services Tax, included in your list price and deducted before royalties are calculated.
What is the US treaty rate for Australia?
The IRS treaty table lists Australia at 5 in the Copyrights royalties column. You must provide a tax identification number in KDP's tax questionnaire to claim a treaty rate.
Is there a minimum payment for Australian authors?
Only wire and cheque payments have a minimum, and KDP lists those as not available for Amazon.com.au. Direct deposit has no minimum payment threshold.
Can I use PayPal for KDP royalties?
No. KDP says Amazon Payments and PayPal aren't available payment options.
