Aussie savings swell as tax cuts banked

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The Australian Bureau of Statistics’ (ABS) Q3 national accounts revealed that real consumer spending had stalled despite households receiving Stage 3 personal income tax cuts.

Real household consumption

The result suggested that households had saved rather than spent the tax cuts, as evidenced by the increase in the savings rate.

Household savings ratio
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Higher frequency data on household spending showed that the trends continued into Q4.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.