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
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more

Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more

Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more

Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more

Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more

Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more

Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more

Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more

Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more

Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more

Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more

Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more

Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more

Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more

Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more

Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more