Working Australians are prioritizing saving over spending as they prepare to receive tax cuts, a new report reveals.
The upcoming Westpac-Melbourne Institute consumer sentiment survey indicates that most households plan to save approximately 80% of the stage 3 tax cuts set to take effect on July 1.
On average, workers will see an additional $29 per week in their paychecks, with the lowest-paid workers receiving $15 more.
“Consumers are likely to use tax relief to strengthen their finances and savings rather than make immediate purchases,” said Westpac senior economist Matthew Hassan.
The report also highlights growing concerns about the rising cost of living and inflation among Australians.