Buyer beware: 10% GST could slam the breaks on online splurge

From doom and gloom to a boom.

Our love of retail therapy appears to have returned with Australians shopping online in huge numbers.

We've splurged a staggering $21 billion in the past year but, buyer beware, new laws are about to make some of our favourite purchases more expensive.

“Over the last decade, it’s been incredible to see the growth but many would say it’s still beginning,” National Online Retailers Association Paul Greenberg said.

Globally in the past year, $2 trillion of goods have been purchased online and $21 billion of that was spent in Australia.

This is an 18 percent spike than what Australians splurged the year before.

Overall, online far exceeded total retail sales which rose by just two percent.

"We had Amazon come into the market last year,” Australia Post spokesman Ben Franzi said.

“But we also had companies like Myer and Catch of the Day launch marketplace offerings.”

With fashion, beauty, homewares and books being the biggest draw cards, delivery figures show residents in Liverpool, Campbelltown and Gosford are proving to be some of the biggest consumers online.

“They certainly enjoy the choice, convenience and the benefit of home delivery,” Ms Greenberg said.

“Especially, when they’re not able to pop out to the shops.”

Our total retail sector is worth more than $300 billion with online sales making up 6.75 percent of that.

But, come July 1, a 10 percent GST will be slapped on all overseas purchases under $1000, with the fear being it could slam the breaks on our online addiction.