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If it is legal, how can it be cheating or a scam?
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I don't know how Australian law reads, nor very knowledgeable about importation taxes, but there are two transactions here. One is a wholesaler to a business (is that taxable?) and the other is a business to a consumer (definitely taxable). So, in the US, at least, the out-of-country business pays import duties, not consumer level taxes. Usually a big difference. However, if the business is merely a 'front' for the out-of-country business, then they have a presence in that country and would indeed have to pay taxes on sales to consumers.