Online spending by Australians grew by over 30 per cent in the December quarter in the wake of businesses using the internet as a cost-effective selling tool, new figures show.

The latest domestic spending figures from credit card company Visa today revealed online spending in Australia grew 37 per cent in the last three months of 2005, from the previous corresponding period.

Visa Australia and New Zealand general manager Bruce Mansfield said a growing number of businesses are using the internet to sell both domestically and internationally.

"Nine per cent of domestic Visa spending on Australian cards occurred at online merchants for the fourth quarter of 2005," Mr Mansfield said.

"Internet sales are no longer just made up of large ticket items such as travel and accommodation, it is being used more and more for everyday purchases."

Although Australian card holders spent $36.2 billion on Visa debit and credit cards during the fourth quarter of 2005, the average amount per transaction grew just 1.5 per cent to $134.