Financial news: Australian households plan to bank their tax cuts: Westpac report

Australian workers plan to bank most of the money from upcoming tax cuts rather than spend it, according to a new report.

The latest Westpac-Melbourne Institute consumer confidence survey shows most households intend to save around 80 per cent of the Stage 3 tax cuts when they come into effect on July 1.

For the average household, the average worker will take home an extra $29 a week starting July 1, while the lowest paid will receive $15 more.

Australian cash.
Most Australians plan to save the money they receive from stage three of the tax cuts, a survey has found. (iStock)

“The results suggest that consumers will use the tax relief as an opportunity to repair their finances and rebuild their savings reserves rather than spend,” said Westpac chief economist Matthew Hassan.

The report suggests that most Australians are most concerned about the cost of living and inflation.

Later today, shadow treasurer Angus Taylor will deliver his post-budget speech at the National Press Club´╗┐ in Canberra.

The 20 richest people in Australia

With the next federal election due in less than a year, the biggest question facing the Coalition is whether it will restore the top end of the Stage 3 tax cuts for the wealthiest Australians if it wins the next election.

Meanwhile, Prime Minister Anthony Albanese has ruled out an early election, saying he will not focus on his campaign until his government has addressed the cost of living crisis.