Families expected to stash extra cash from tax cuts
Michael ReadEconomics correspondent
Cautious households are making extra mortgage repayments and cutting back on non-essential spending, with the Reserve Bank of Australia predicting tax cuts in July will largely be saved instead of pumped back into the economy.
Next week’s budget will forecast real disposable income will grow by 3.5 per cent in 2024-25, after falling sharply over the past couple of years. The turnaround is largely due to the stage three tax cuts, which will mean income taxes become a net contributor to disposable incomes next year after years of bracket creep.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Economy
Fetching latest articles