Westpac estimates that the stage-three personal income tax cuts have injected an additional $6.4 billion into the economy since they took effect on 1 July.
However, analysis of one million Westpac bank accounts suggests that about 84% of this money has been put into offset and deposit accounts rather than being spent.
Westpac economist Jameson Coombs said that spending among Westpac customers increased by only 1.5% in the September quarter, equating to an average increase of around $138 per person.
