The application of the GST to online shopping would have little to no impact on the appetite of shoppers, a new study conducted by MasterCard has shown.

Despite the research showing that 79 per cent of Australians oppose the reductions of GST exemption levels on online goods, 38 per cent of respondents said it would have no impact on their shopping patterns, while 24 per cent said it would only cause them to buy online less often.

MasterCard Australia’s vice president strategy and corporate affairs, David Masters said the study shows price isn’t the only motivating factor driving people to shop with overseas online retailers.

“Australians are right at the forefront of the modern retail experience where online shopping has become the norm. For many, the comparative benefits are too good to pass up.”

“86 per cent of the people we surveyed said price was important, but there’s no question that Australians are hard wired to want to shop locally.”

Chief executive of local online retailer Dealsdirect.com.au, Michael McRitchie says reducing GST exemption levels won’t stem the tide.

“The current online market dynamic is here to stay; the onus is on local bricks and mortar and online operators to lift their game in areas where the can make a difference. After sales service, delivery times, product knowledge and being a ‘trusted Australian name’ count for everything in the online world.”

Other key statistics from the MasterCard research into online shopping include:

  • 12.6 million Australian adults have shopped online in the last twelve months
  • Two out of every three shop online at least once a month
  • 60 per cent of regular online books/DVD shoppers claim GST changes won’t deter them from shopping overseas online