Families are likely to save their extra cash

Around 1.5 million families that receive tax benefits will get an extra $600 a year under the terms of the latest Budget.

President of the Australian Retail Association Roger Gillespie is hoping to see the extra cash spent in shops across the country, the Australian reports.

He said more retail activity would ultimately benefit the economy, although he believes people will actually put the money into their savings accounts.

"People aren't confident to spend their money. There is still a lot of fear in the community, especially given the full impact of carbon tax is still uncertain," he was quoted as saying.

This would be a sensible thing to do, as the cost of living continues to rise down under.

A lot of households have struggled to cope with increased energy bills, while drivers have been paying excessive amounts to fill their cars with petrol. Having some savings to fall back on has proven to be a godsend for many people in recent months.

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