What to do with unwanted Christmas gifts

When it comes to gift-giving over the festive season, sometimes a Christmas present misses the mark.

So rather than an unwanted gift sitting in a drawer and gathering dust for months (even years) until it's eventually thrown out, regifting is often a popular solution.

But there are some things to consider before you rewrap the item and send it on its merry way.

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Sydney Morning Herald money columnist Joel Gibson said any type of recycling is a good thing, but people's feelings need to be considered.

"Who gave you the present? How personalised is it? And if your name is engraved on it, I suggest you don't regift," he told Today.

"Another thing to consider is: will they ever find out?"

In many cases, the gift-giver will often provide a receipt with the gift - so as to ensure the sentiment doesn't go to waste.

This in turn comes in handy if you decide you want to return or exchange the unwanted gift.

But what are your rights when it comes to returning the gift?

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"You have a right of return under consumer law in Australia if goods are defective or wrongly advertised," Gibson said.

"There is no legal right for change of mind.

"Most stores will allow a change of mind between 30 and 60 days."

Gibson said different stores have different policies so it helps to have proof of purchase.

"That doesn't need to be a receipt - it would be ideal, but it could be a tag ... a bankcard receipt or statement, it could be that is the only shop in Australia that sells that product," he said.

"As long as you have some form of proof of purchase, you are in a good place."

See what other advice Joel Gibson had in the video above.

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