The Courier-Mail

Web sales frenzy is over

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ONLINE re­tail sales have sagged as a spend­ing frenzy fades in the af­ter­math of the Gov­ern­ment’s Bud­get-re­lated small busi­ness tax cuts.

The latest NAB Online Ret tail Sales In­dex shows a 1.4 per c cent dip in July, a sig­nif­i­cant de­te­ri­o­ra­tion on the re­vised 2.3 per cent growth in June.

NAB chief economist Alan Oster said Trea­surer Joe Hockey’s $20,000 in­stant as­set write-offs for small busi­nesses, an­nounced in the May Bud­get, could have con­trib­uted to the June surge.

“It’s part of the rea­son why June was so strong and, there­fore, why July was so weak,” he said. “We think (now) we’re get­ting back to nor­mal.”

Online sales rose 6.2 per cent to $17.4 bil­lion in the year to July, with elec­tronic games and toys the top cat­e­gories.

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