Save
Are savers hurting the Australian economy?
High levels of debt and fears of a recession are causing Aussies to squirrel away their savings instead of spending on discretionary items – hurting the economy at large as a result.
Are savers hurting the Australian economy?
High levels of debt and fears of a recession are causing Aussies to squirrel away their savings instead of spending on discretionary items – hurting the economy at large as a result.

The Australian economy grew 0.4 per cent in seasonally adjusted chain volume terms for the September quarter and 1.7 per cent through the year, new figures from the Australian Bureau of Statistics have shown.
However, the housing sector is not holding up its weight, with subdued figures coming from consumers.
The figures showed that dwelling investment recorded its fourth consecutive decline with a fall of 1.7 per cent during the quarter.
Household expenditure increased 0.1 per cent, with weakness in spending on discretionary goods and services. Furthermore, the household saving ratio rose to 4.8.

“The reduction to tax payable did not translate to a rise in discretionary spending, which led to a visible impact to household saving,” ABS chief economist Bruce Hockman said.
Even though the tax cuts were generally saved by consumers instead of spent in the economy, federal Treasurer Josh Frydenberg noted that the economy is benefiting from the cuts.
“Whether spent or save, the tax cuts have helped put household in a stronger economic position, making them more financially secure with more money in their pocket, and this will support the economy,” the Treasurer said.
“Household disposable income grew by 2.5 per cent, the fastest quarterly rise in a decade, with the ABS saying it was driven by a decline in income tax payable and interest paid on dwellings as well as continued rises in the compensation of employees.”
The rise in household gross disposable income was driven by a decline in income tax payable and interest paid on dwellings, as well as continued rises in compensation of employees.
About the author

About the author


Savings account
Protecting your savings from inflation in Australia
Inflation is an economic phenomenon that erodes the purchasing power of money over time, directly impacting the real value of your savings. In Australia, as in many parts of the world, periodic rises ...Read more

Savings account
Maximising your savings effortlessly: The power of automation in Australia
In the fast-paced world we live in, managing finances can often become an overlooked aspect of our daily routines. However, the advent of technology has introduced a seamless solution to this ...Read more

Savings account
Maximising your savings account: What you need to know
Saving money is a fundamental aspect of financial security and wellbeing. Read more

Savings account
Are ‘nudges’ the secret ingredient to financial wellness?
Are better financial habits a simple reminder away? Read more

Savings account
Afterpay launches Money app, bank accounts and retroactive BNPL
Afterpay is upgrading its app-based arsenal. Read more

Savings account
2020 saw the fastest increase in bank deposits since the GFC
Bank deposits of Australian households increased by more than 12 per cent last year. Read more

Savings account
Australians are putting savings goals ahead of holiday plans
While travel restrictions are soon set to ease, Australians are still putting their savings goals first. Read more

Savings account
More than half of Aussie Millennials don’t have a savings plan
Money is remaining a taboo subject for Millennials, which is leading to poor saving habits, a big four bank has revealed. Read more

Savings account
Protecting your savings from inflation in Australia
Inflation is an economic phenomenon that erodes the purchasing power of money over time, directly impacting the real value of your savings. In Australia, as in many parts of the world, periodic rises ...Read more

Savings account
Maximising your savings effortlessly: The power of automation in Australia
In the fast-paced world we live in, managing finances can often become an overlooked aspect of our daily routines. However, the advent of technology has introduced a seamless solution to this ...Read more

Savings account
Maximising your savings account: What you need to know
Saving money is a fundamental aspect of financial security and wellbeing. Read more

Savings account
Are ‘nudges’ the secret ingredient to financial wellness?
Are better financial habits a simple reminder away? Read more

Savings account
Afterpay launches Money app, bank accounts and retroactive BNPL
Afterpay is upgrading its app-based arsenal. Read more

Savings account
2020 saw the fastest increase in bank deposits since the GFC
Bank deposits of Australian households increased by more than 12 per cent last year. Read more

Savings account
Australians are putting savings goals ahead of holiday plans
While travel restrictions are soon set to ease, Australians are still putting their savings goals first. Read more

Savings account
More than half of Aussie Millennials don’t have a savings plan
Money is remaining a taboo subject for Millennials, which is leading to poor saving habits, a big four bank has revealed. Read more