Retailers will be happy to hear that 67 per cent of Australians are looking to splurge on retail goods with their tax refund this year, according to a new survey by credit card comparison website CreditCardFinder.com.au.
According to the survey, the average tax refund is expected to range from $1,000 to $3,000 and a majority of that is expected to spend on clothes, electrical and household goods and holidays.
Jeremy Cabral, publisher of CreditCardFinder.com.au, told RetailBiz the intention of the survey was to have a look at what consumers would do with a lump sum amount of money, particularly given the close proximity there was to the recent credit card reforms. (http://www.bankingreforms.gov.au/content/Content.aspx?doc=furtherreforms.htm)
“We really wanted to show the importance of the lump sum against a credit card balance,” he said
The survey found 29.4 per cent plan to spend their refund on booking a holiday; 21.3 per cent plan to spend the cash on household goods; 9 per cent plan to purchase personal electronic devices such as iPads, TVs, new smart phones; and 7.3 per cent will splurge on new clothes.
“Consumers are already outlaying on their credit card now in anticipation of their refund that’s on its way. There are some excellent cards on the market right now that offer a huge amount of value for money and are ideal for people looking to spend now and clear the debt once they receive their refund,” Cabral says.
As for whether Australia is moving into a more cashless society, Cabral certainly believes so.
“I think with all the technology coming in it is a lot easier particularly with contactless payments as they’re not longer limited. Anything attached to Visa or Mastercard can now take advantage of those technologies. Also now that every Australian is making an online purchase, it’s changing the game.”