STRUGGLING retailers want to spoil consumers' post-GFC party and put a tax on overseas spending.

With new research showing half of all Australians now shop online overseas, retailers have approached the Federal Government to wind back the GST threshold on overseas goods from $1000 to $400 or even abolish the limit altogether.

Their latest push will target independents holding the balance of power in Federal Parliament, the Courier-Mail reports.

Retailers have been hit hard by stagnating sales and the latest CPI figures that show the number of goods we now pay less for, compared to a year ago, has rocketed.

Prices of audio, visual and computer equipment are down by 20.3 per cent compared to a year ago, according to Australian Bureau of Statistics figures released last week. We're also paying less for women's and kid's clothes (about 5 per cent).

A buoyant Australian dollar also has led to more consumers shopping online, often for the first time.

Retailers fear an avalanche of money offshore once first-time shoppers become reassured by their goods arriving safely.

Hardest hit by the online shopping boom have been sporting goods, books and music retailers who compete against sites that operate on low margins and provide free worldwide delivery.

A spokesman for the Assistant Treasurer, Bill Shorten, said the Board of Taxation had reviewed the application of GST to cross-border transactions after a request.

"The board found that it is not administratively feasible to apply the GST to low value goods - that is, goods worth less than $1000 - that are imported from overseas," the spokesman said. "However . . . it deserves serious examination.

"While the threshold is good for consumers, we need to balance that against the interests of retailers and the administrative burden on businesses."

Australian Retailers Association chief executive Russell Government said the Federal Government stood to reap at least $600 million if it adopted the measure.

Australian National Retail Association chief executive Margie Osmond said while ANRA would not agitate for the tax, they would recommend the Government look closely at its implementation.

But Choice spokesman Christopher Zinn questioned the logistics of having to collect tax on lower-priced goods from overseas.

"Does that mean Amazon will have to collect GST for the Australian Government or will there be a warehouse somewhere that we all drive out to to pick up our goods and pay the tax?" Mr Zinn said.

National Retail Association executive director Gary Black questioned claims the Government would collect $600 million out of the proposal, saying a more accurate assessment would be more like $20-$30 million annually.