While retailers are concerned that consumers will further reduce their spending with the introducing of the carbon tax, new research suggest otherwise showing that consumers are planning to splurge on jewellery, holidays and clothes with their tax refund.

A survey conducted by by Moi Moi Fine Jewellery has found that 52 per cent of respondents want to spend their tax money on luxury holidays, jewellery and clothes.

In comparison, only 16 per cent want to use the cash to clear their debt even though 64 per cent admitted that they should be using it pay their debt or at least save the money they receive back.

Twenty-six per cent of women surveyed want to spend their tax refund on jewellery and 20 per cent on a luxury holiday. Meanwhile, 25 per cent of men cited a luxurious holiday as their ideal way to spend their tax refund cash with 19 per cent preferring to spend the money on household items and renovations.

“At this time of the year we all struggle to find a balance between being sensible with our tax refund and allowing ourselves a treat for all the hard work over the year. Our statistics show that consumers are definitely split between needs and wants,” Alana Chang Weirick, Moi Moi Fine Jewellery director, said.

Interestingly, 59 per cent of women said they are conscious of spending money at the moment following the GFC while 55 per cent of men said they’re spending the same way as they have been for years.

“We’re telling customers that there are ways to get the best of both worlds,” Weirick said.

“Women can indulge their desire for a new piece of jewellery with their tax refund by buying sensibly. For example, a one carat diamond ring will cost around $10,000 whereas a moissanite ring of the same quality and size costs $1,780 saving customers thousands of dollars.  So women can have their dream piece of bling but also have some money left over to clear debt or add to their savings.”