The Federal Government’s latest effort to combat online piracy has been launched.

Under the Digital Economy Act, companies and internet service providers will have to collect and store personal information about customers in a database, but it will also be able to charge companies for their use.

The law allows internet service companies to share that information with the Federal Government.

The new law aims to tackle online piracy by making it easier for Australians to shop online.

“We know from experience that online commerce takes time and effort and money,” Attorney-General Nicola Roxon said in a statement.

“This is why it is important that companies do all they can to make it easier and faster for Australians who are willing to pay for their online purchases to shop on our marketplace.”

Under the law, a company will be required to collect information from an Australian customer for three years, unless the customer opts to opt out.

“The government is introducing a new, innovative, tax-free revenue stream that will benefit consumers and businesses by providing them with more opportunities to access the Australian economy,” Ms Roxon added.

Online retailers and services such as Amazon will be exempt from the tax.