With the Federal Government’s $900 cash bonus – part of the $42 billion stimulus package – hitting consumer bank accounts today, research conducted by the Australian National Retailers Association (ANRA) has shown that people are divided on whether to spend the money or save it.
The ANRA consumer sentiment survey has shown that 22 percent of respondents plan to spend the money on non-essential items such as clothes, footwear, white good and furniture, while a further 22 percent will spend it on general living expenses.
However, 8.5 percent said they would put it towards their mortgage, 23 percent will pay down debt, and 16.6 percent will save the money.
ANRA chief executive Margy Osmond is confident that consumers will spend the money as intended.
“With the continued reduction in interest rates, people will feel more confident about loosening their purse strings and spending the cash bonus.”
Recipients of the Family Tax Benefit Part B and Recipients of Family Tax Benefit Part A with a child aged between 4-18 years old will be the first to receive the cash bonus.
The bonus is intended to be spent, with a focus on boosting the economy.
For a full break down on the package, please refer to ‘$42 billion stimulus package to fight recession.’
What do you plan to do with your cash bonus? Spend or Save? Leave your comments below!