It seems the stimulus payments are not being spent as intended, with one in two Australians planning to save the cash bonus or use it to pay down debt.
The Australian National Retailers Association have been surveying consumers since October as to how they will spend the payments and the response has been consistent with 31 percent of consumers using the money to pay down debt, including their mortgage, 22 percent will spend it on non-essential items like clothing and footwear, and 21 percent will spend on general living expenses.
ANRA CEO Margy Osmond said that Australians are being realistic about the economy and are being “cautious” with their money.
“ANRA’s surveys show that Australians were realistic about the economy when the cash bonuses first began hitting bank accounts and that view hasn’t changed.
“People were cautious from the outset and they’ve stuck with that conservatism.”
Osmond believes the biggest priority for homeowners is paying off their mortgage.
“The mortgage is a bigger priority now than what it was in January and fewer people are popping the money into their savings account. Overall, Australians are still split evenly between spending and saving the cash.”
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