The Government’s $10.4 billion stimulus package was designed to give the economy a boost, but a survey shows most recipients will either save the money or use it to pay off debt.
The Government’s $10.4 billion stimulus package was designed to give the economy a boost, but a survey shows most recipients will either save the money or use it to pay off debt.
Figures from the Australian National Retail Association show 59% of Australians who will benefit from the package will put most of the money received towards paying of debts and living expenses.
The survey shows only 14% of respondents will spend the money on either Christmas gifts or for things for themselves.
And in a result that defies the Generation-Y spending stereotype, most 18 to 24 year olds in the survey say they plan to save most of their bonus.
ANRA chief executive Margy Osmond says the package is a clear indicator Australians are thinking carefully about their finances.
“Retailers are being squeezed on two sides. Consumers are hesitant to spend, which is hitting the bottom line, and at the same time retailers are paying more for their product because of the reduced buying power of the Australian dollar.
“There are now clear signals that another interest rate cut is warranted,” she says.
The package, which takes effect from 8 December, will provide single pensioners with $1400 and couples with $2100. Around two million families will receive $1000 for each child in their care, while 35% of Australians will take away nothing from the package.
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