- 35% of Aussies plan on putting their tax return into savings
- An estimated $17.6 billion will be stashed not spent
- The news comes as the ABS reports record high wealth per capita
More than a third (35%) of Australians are planning to save rather than spend their likely tax refund this year.
This is the finding from a recently conducted survey by Finder, a fintech and research company.
If this result plays out, then based on the average tax refund of $2,600, it would mean that 6.8 million Aussies will be saving an extra $17.6 billion.
This has all kinds of implications for those in retail, property and other related businesses.
Tax and spend
The same Finder survey of 1,000 people found that 12% of Aussie will direct the money towards household bills while 7% will put them towards paying off their mortgage.
However, nearly a third (30%) of Aussies don’t anticipate any tax refund this year.
Kate Browne is a personal finance expert from Finder. She is encouraging Australians to think sensibly about how they use their prospective cash injection.
“Most people have worked hard throughout the year for this extra cash, so it’s promising to see that just over a third of Aussies aren’t planning to spend it all at once.
Kate Browne, Finder
“In previous years, we would have anticipated higher rates of spending on things like retail therapy and travel.
“Australians are understandably wanting to save whatever cash they can, given the uncertain events of the past 12 months,” she said.
People are naturally seeking to have savings as a buffer in what is seen as the current uncertain climate. Also, overseas holidays are not an option.
Interestingly, Gen Z led the savings trend with almost half (45%) of them planning to saving their tax refund.
Along with findings of a savings mood among Australians comes a report from the Australian Bureau of Statistics of record-high wealth per capita linked to the rising house prices.
