Australian households tighten budgets, save on taxes and groceries

New research shows that a majority of Australians expecting a tax refund this year plan to use the money to improve their finances. Among the 38% who anticipate a refund, 58% intend to put it straight into savings, 14% will use it to pay household bills, and 6% aim to reduce their mortgage. Only a small share plan discretionary spending such as holidays or shopping.

Separate findings from Compare the Market reveal that shoppers could cut grocery expenses by up to 43% – roughly $3,400 a year – by swapping 20 common branded items for supermarket home‑brand alternatives. The biggest savings come from non‑food products like mouthwash, toilet paper and cleaning supplies, while the research also warns of “shrinkflation” where product sizes shrink but prices rise.