Economic uncertainty and cost-of-living pressures are driving households to save more – a trend that could slow the economy and housing market.
New research has revealed a growing number of Aussies have eyed expected tax refunds as a vehicle to boost their savings accounts or settle household bills.
And while this is a welcome trend at the individual level, reduced spending at tax time could put further pressure on an already slowing economy and, indirectly, the housing market.
According to the polling by Finder, most Aussies who receive a tax-time cash injection will put the money straight into household savings or to pay bills.
Over 8.1m Aussies (38 per cent) expect a tax refund this year, while 15 per cent are expecting a tax bill, with the research revealing over half of those who expect a refund (58 per cent) are planning to stash their refund back into their bank account.
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Source: Finder
One in seven taxpayers expecting money back (14 per cent) say they will use their tax refund to pay for household bills as expenses like insurance and electricity burn a bigger hole in their pocket.
The survey revealed 6 per cent of households expecting a tax return plan to put it towards paying off their mortgage as interest rates start to increase again, while the same proportion (6 per cent) will use a tax refund to splash out on a holiday.
Slightly fewer (4 per cent) intend to pay off their credit card with the extra cash or go on a shopping spree (4 per cent).
Investing in shares (3 per cent) and paying off buy-now-pay-later debt (2 per cent) or a personal loan (1 per cent) round out the top nine uses for a tax return in 2026.
Source: Finder
One in four Aussies (25 per cent) don’t know if they’ll get a refund or a bill this financial year, while 21 per cent said they don’t pay income tax.
Finder money expert Richard Whitten said tax time for most Aussies was about getting ahead rather than treating themselves.
“Aussies are still feeling the pinch and many are relying on a tax refund to create a bit of breathing room in their budget,” he said.
“Whether it’s topping up savings, paying bills or chipping away at debt, most people are prioritising financial security over splurging.”
Richard Whitten
He added many households have spent the past year juggling higher living costs and mounting expenses.
“From electricity and insurance premiums to groceries and mortgage repayments, everyday costs continue to put pressure on household budgets,” Mr Whitten said.
“That’s why it’s encouraging to see so many Australians planning to use their refund to strengthen their finances rather than spend it impulsively.”
Mr Whitten said even a modest refund can make a meaningful difference.
“A tax refund can provide a valuable buffer, helping families rebuild emergency savings, get on top of bills or reduce debt,” he said.
Aussies who get a tax return this year say they don’t plan to spend it.
“While it can be tempting to book a holiday or indulge in a shopping spree, putting that money towards your future could deliver far greater rewards.
“Using your refund to boost your savings, invest or contribute extra to super can help turn a short-term windfall into long-term financial progress.”
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