Aussies lose $1.4bn on unused gift cards, new data suggests

The true cost of the common error has been revealed, as Aussies mistakenly let millions of dollars in gift cards go to waste.

Aussies will never spend about $1.4bn in gift cards, according to new data from Finder.

Thousands of Aussies gave or received a gift voucher over the holiday season, but it turns out a lot of them will never be used.

The comparison website surveyed more than 1000 Australians to uncover the true extent of wasted money sunk into gift cards.

Countless Aussies have felt the sting of a gift voucher that goes missing just as you’re about to spend it, and when its finally found, it’s already expired.

Now the true cost of the common error has been revealed.

About $1.4bn in unused gift cards are expected to be wasted each year by Aussies. Picture: Supplied

They found a quarter of people, or the equivalent of 4.9 million Australians, have received a gift card and never used the funds.

Finder estimates it is costing Australians an eye-watering $1.4bn a year, or almost $200 in wasted cash per individual.

Finder personal finance expert Sarah Megginson said while gift cards can be the perfect gift for some, they are challenging to stay on top of.

“Opting for a gift card is a practical choice when you’re unsure what the person will like or you want to give them something really useful,” she said.

The gift cards are a popular Christmas gift, but are often being forgotten about. Picture: Supplied

Women are wasting less money but are more likely to forget to use gift cards. Picture: Supplied

“Keeping track of them can be challenging, and many end up unused simply because they get lost in a wallet or a drawer.”

About one in five people didn’t get around to using the card before it expired, while about 5 per cent lost the card.

A much smaller amount, about 1 per cent, were unable to spend the gift card because the business went bust.

More than a third of those surveyed said they knew they owned at least one unused gift card, while a quarter admitted to holding at least two.

Interestingly, while men were left with much more money on unspent cards – an average of $243 compared with $160 for women – overall, they were less likely to let the funds expire.

Baby boomers are the best at spending gift cards, with only 13 per cent having lost money, compared to 37 per cent of gen Z.

It is expected thousands of Aussies received gift cards over the Christmas period. Picture: NCA NewsWire/Tertius Pickard

As of November 2019, all gift cards sold in Australia must come with a minimum three-year expiry period.

However, this doesn’t protect card holders from a retailer going out of business or changing location.

Finder suggests consumers set a reminder on their phone each month with the gift cards' expiry date to prompt them to use it.

Alternatively, they can be sold at an online marketplace for a slightly lesser value to avoid losing the value completely.