In beating Zhang Shuai yesterday, Konta had become the first British woman to reach the last four of a singles Grand Slam event in 33 years.
However, she was unable to advance through to Sunday's final as her German opponent wrapped up the win in one hour and 24 minutes.
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Having committed a number errors early on, Konta found some rhythm to take a 5-4 lead in the first set, only for world number six Kerber to win the next three games in a row.
Kerber took control from that moment onwards and she dropped just two more games on her way to booking her place in the final.
As for Konta, she started the tournament 47th in the world, but her performances in Melbourne are expected to see her rise into the top 30.