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.

Start comparing savings accounts - last updated 19 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

    Compare
    Details
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

    Compare
    Details
  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

    Compare
    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

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

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

    Compare
    Details