Aussie households have built an immense savings war chest

Wednesday, 9 December 2020

As reported yesterday, Australian households are experiencing a massive disposable income boom on the back of unprecedented income support:

At the same time, Australia’s household saving rate is running at levels not seen since the mid-1970s at 18.9% in the September quarter:

As shown in the next chart, Australian households have amassed a massive war chest of savings over the prior two quarters, with $67.7 billion saved in Q2 and $60.0 billion saved in Q3:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.