The cuts have not influenced significant financial decisions, such as buying property
Extra household funds from Stage 3 tax cuts will primarily be used to pay down debt, move to savings, or offset accounts to assist with mortgage servicing, a recent survey has found.
The survey from financial management platform Moorr, which gathered data from more than 1,400 Australians, suggests that income increases will not significantly impact household budgets.
“Ninety-six per cent of Australians declared that the Stage 3 tax cuts would offer little to no reduction in financial pressure on their household budget,” said Ben Kingsley (pictured above), Moorr co-founder. “Less than 4% of those surveyed noted any extra income would ‘significantly’ reduce financial pressure on their household.”
Paying off debt and covering living costs was a notable choice among respondents, representing 20% of responses. Nearly 12% of respondents plan to invest the additional funds, while over 50% will move the funds to specific offset and savings accounts to manage the current economic climate in Australia.
Notably, 88% of those surveyed indicated that the additional household income from the Stage 3 tax cuts has not influenced significant financial decisions, such as buying a property.
“The Stage 3 tax cuts haven’t moved the needle for many of the significant financial decisions families are considering, such as buying a property,” Kingsley said. “With the cost-of-living and inflationary pressure continuing to impact Australians, any household income increase is being used conservatively to maintain existing financial positions.”
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