10 million Australians will take hits to their take home pay next financial year amidst cost of living crisis

stressed woman doing taxes australia

Tax cuts introduced in the 2018-2019 financial year are being axed, with the biggest impact to be felt by middle-income earners. Those earning less than $126,000 per year are set to cop the majority of this.

Though middle income earners will feel the burn the most, the removal of the existing tax offset will impact all taxpayers earning between $45,000 and $200,000.

This will look like, on average, $600 less in tax refunds per taxpayer and a big difference in take home earnings come the 2023-2024 financial year. 

The average person earning $50,000 per year will be receiving a 3.4% tax cut (roughly $29 per week). This changes to a 2.1% tax cut for those earning below $90,000.

With tax time fast approaching (you can start filing at the beginning of July), it’s the last of your tax returns that will include the current offset. It’s also an important time to develop a strategy for tackling the rising cost of living and further cash rate hikes, with less cash in your pocket at the end of the month.

Since less money after tax compounds the impact of rising rates, increasing the sting of mortgage repayments or record-high rental costs, you may want to build up some security. One option may be to set some money aside in a short term deposit or a high interest savings account. Both products have seen rates benefit from cash rate rises.

If you’re interested in stashing some cash, take a look at our Best Term Deposits and Best Savings Accounts.

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Last updated 12 December 2024 Important disclosures
  • Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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  • Bonus Saver

    5.00% p.a. (for $0 and over)

    0.50% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.

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  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.

    Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.

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  • MoneyMAX Account

    No Current Offer

    4.70% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

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  • Smart Saver Account

    4.50% p.a. (for $0 and over)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Increase account balance by any amount and make no more than two withdrawals

    Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.

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^See information about the Mozo Experts Choice Savings Account Awards

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