Gift cards are a waste of money

Gift cards have been popular with shoppers this year.

IPSWICH shoppers are out in force and, for many, cashing in Christmas gift cards is their main reason for battling the post-Christmas sale crowds.

Australians spend an estimated $1.5 billion a year on gift cards but, according to consumer group Choice, up to one third of those cards will never be redeemed.

A recent survey by Melbourne University's School of Business and Economics added to the debate, finding 19% of gift card vouchers were unwanted by those who received them.

Queensland Attorney General Paul Lucas said a new discussion paper from the Commonwealth Consumer Affairs Advisory Council (CCAAC) would help to end the waste.

"An astonishing 50% of people never use their gift card's full value," Mr Lucas said.

"This is a massive amount of money going down the drain.

"This discussion paper is about getting value for money.

"When you buy a gift card for someone you expect that you will get value for money and that they will be able to use the gift card's total amount when and on what they like."

A spokesman for a major Riverlink retailer said Ipswich shoppers were definitely taking advantage of the convenience of gift cards.

"They have been very popular this year," he said.

"I think it's the easy option for customers."

"There was an increase in people buying them to put under the wishing tree this year."

The CCAAC paper looked into a range of issues from expiry dates to the effect of company insolvencies on gift card redemptions.

People have until March 2 next year to make a submission about the report.

GIFT CARD TRAPS

• Check expiry dates. Cards vary from no expiry to months.
• Some stores won't accept shopping centre cards.
• Fees and charges can erode the card value over time.