Inflation-wary households plan to bank their tax cuts, report says

Working Australians are planning to bank most of their money from upcoming tax cuts rather than spend it, according to a new report.

The latest Westpac-Melbourne Institute consumer sentiment survey shows most households intend to save about 80 per cent of the stage 3 tax cuts when they come into effect on July 1.

For the average household, the average worker will take home an extra $29 a week from July 1 while the lowest-paid gets $15 more.

READ MORE: British grandfather bound for Australia dies, dozens injured as Singapore Airlines flight hits severe turbulence

"The results suggest consumers will use tax relief as an opportunity to repair their finances and rebuild saving buffers rather than spend," Westpac senior economist Matthew Hassan said.

The report suggests most Australians are feeling more concerned about the cost of living and inflation.

Later today, the shadow treasurer Angus Taylor will deliver his post-budget address at the National Press Club in Canberra.

With the next federal election due in less than a year, the biggest question facing the Coalition is whether it will reinstate the top end of the stage 3 tax cuts for the wealthiest Australians if it wins the next election.

Meanwhile, Prime Minister Anthony Albanese has ruled out an early election, saying he won't focus on his campaign until his government has tackled the cost of living crisis.