Less than 10 percent of Australians plan to splurge the extra cash they will receive through the Stage 3 tax cuts.
From July 1, taxpayers are expected to be between $350 and $4500 better off each year, through an adjustment of the income tax rates.
Data from the National Australia Bank (NAB) shows that more than a third of Aussies (36 precent) plan to boost their savings, while 29 percent will put it towards easing cost of living pressures.
NAB Personal Banking Executive Paul Riley said only 8 percent said they would splurge on non-essentials.
Mr Riley said Gen Zs were the most likely to save the cash, with 53 percent saying they would stash it away.
More than 20 percent said they would use the money to pay down debt.
NBA estimates the annual tax savings from the Stage 3 tax cuts will be:
- $350 (For those with an annual taxable income under $35,000).
- $750 ($35,000-$50,000).
- $1200 ($50,001-$75,000).
- $1900 ($75,001-$100,000).
- $3000 ($100,001-$150,000).
- $4000 ($150,001-$200,000).
- $4500 (Over $200,000)
