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

ANRA undertook a poll of 1000 Australians late last week, asking how consumers will spend their part of the Federal Government’s stimulus package.

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

“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.

“Most people over the age of 65 will put the extra money towards living expenses or save it.

According to Osmond the survey confirms what the ANRA has been saying for a number of months – people are being sensible with their money. 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 per cent of those aged between 18 and 24 planning to save their bonus,” said Osmond.

Close to 35 per cent of Australians will not benefit from the government’s spending package.

“There are now clear signals that another interest rate cut is warranted,” said Osmond.

“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.”