ANRA CEO Margy Osmond said that Australian are most likely to save their bonus from the Government's stimulus package.

A survey by the Australian National Retailers Association (ARNA) has found that Australians are likely to be sensible with their cash bonus and either put it towards their mortgage or save it.

ANRA undertook a poll of 1,000 Australians in late October, asking how consumers will spend their part of the federal government’s stimulus package.

ANRA CEO Margy Osmond said, “Close to 40% of people will put the money towards their mortgage or credit card debt, or pop it into the bank.”

Money will relieve financial pressure 
Osmond added that people are going to use this money to get ahead and relieve the financial pressure. “Only nine per cent are going to spent it on themselves or Christmas gifts or entertaining over the festive season," she said.

“Most people over the age of 65 will put the extra money towards living expenses or save it.This survey confirms what we have been saying for a number of months now. People are being sensible with their money - they’re cocooning. They’re spending their money carefully and only purchasing what is absolutely necessary.

“Young people are also heeding the global warning, with close to 20% of those aged between 18 and 24 planning to save their bonus,” Osmond said.

Close to 35% of Australians will not benefit from the Government’s spending package and Osmond said that this was one factor that had placed pressure on the Reserve Bank of Australia to increase interest rates this week.

“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,” Osmond said.