Wesfarmers boss Richard Goyder says the federal government's cash payments to families of school children does boost business at Target, Kmart and Officeworks stores before classes start for the year.
Federal Opposition Leader Tony Abbott has committed to abolishing the schoolkids bonus if the Coalition is elected to power, calling it a "cash splash" that has "nothing to do with education".
Mr Goyder said on Thursday that the government funds had lifted sales by up to one per cent during January at Target, Kmart and Officeworks stores.
"There has been a bit of money around in January because of the back-to-school money," Mr Goyder told analysts in a briefing following the release of Wesfarmers' half-year results on Thursday.
"When the cheques are released we can see the impact at store level."
The schoolkids bonus pays families $410 a year for each child in primary school and $820 per child in high school, distributed in instalments in January and July.