Households ploughing cash into savings account
Australians have been reaping the rewards of consecutive interest rate cuts, free cash handouts and swathing tax cuts and have been ploughing the money saved straight into savings accounts, term deposits and other investments.
New figures from the Australian Bureau of Statistics (ABS) show that Australians are more cashed up now than they have been at any point since the last recession, with data showing that total disposable income soared by $11 billion in the last three months of 2008.
And while the Reserve Bank’s rate cut bonanza and other incentives have helped Australians make the most of low-interest savings accounts, the ABS also reported a collective belt tightening and a sharp decline in the number of people splashing out on new cars, expensive meals and alcohol and cigarettes.
Commenting on the figures, treasurer Wayne Swan was quick to praise the role of the Christmas cash bonus handed out in December.
"I don’t think there’s any doubt that we would be looking at far worse numbers had it not been for the impact of the economic security strategy," he commented.