Most Australians are planning to save any extra money they receive from their stage 3 tax cut, new data from NAB Bank has revealed.
Younger Australians, women and those earning between $100,000 and $150,000 are the most likely to save their boost when the stage 3 tax cuts kick in on July 1 rather than spend it, according to data gleaned from the most recent NAB Australian Wellbeing Survey of more than 2000 Australians.
More than a third of those surveyed are planning to save their cash — with 53 per cent of Generation Z, 39 per cent of women and 49 per cent of those earning between $100,000 and $150,000 saying they will do so.
Almost a third of people plan to spend their cash combatting the higher cost of living, while just over a fifth say they will pay off debt.
Smaller groups say they will invest or splurge on non-essentials.
Almost eight in 10 people surveyed said they were trying to save money.
On average, they are looking to create about $17,000 in savings.
Most people said they were saving for a holiday or rainy-day fund, while others said they were saving for a home or retirement.
Tax time looming
The stage 3 tax cuts are set to come into effect on July 1 and will allow Australian taxpayers to pocket between $350 and $4500 extra annually.
It comes at a time when “household financial stress has reached its highest point in eight years”, a NAB spokesperson said.
NAB Personal Banking executive Paul Riley said savings had been prioritised by customers for some time.
“Despite cost-of-living pressures, Australians have been prioritising their savings wherever possible over the last year or so,” Riley said.
“The money people expect to get back from stage 3 tax cuts will help supercharge their savings or rainy-day funds.
“Many Australians are also keen to use the money from these tax cuts to give their household budgets, which are under pressure from the cost-of-living crunch, some much-needed breathing room.”