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Australians are increasingly tapping into their savings to make ends meet as the prospect of cost-of-living relief in the upcoming federal budget becomes more uncertain.
Government officials have indicated that the upcoming budget will likely emphasize fiscal restraint.
According to research from the comparison platform Finder, 54% of Australians have withdrawn money from their savings over the past year.
This withdrawal amounts to a staggering $85 billion nationwide, at a time when tensions in the Middle East continue to escalate without any resolution in sight.
“This really highlights the financial strain many people are experiencing,” remarked Taylor Blackburn from Finder.
“I think everyone would be well served to batten down the hatches, save where you can.”
With households tightening their belts, attention is turning to the federal budget in May.
Treasurer Jim Chalmers today said there would be spending cuts and likely reforms on tax, housing, and superannuation.
Former Nationals Leader David Littleproud said Australian families were cutting back.
“They are making these tough decisions at the kitchen table and the government has to do the same,” he said.
Assistant Foreign and Immigration Minister Matt Thistlethwaite said the focus would be “stabilising inflation and boosting productivity”.
Prime Minister Anthony Albanese’s focus was on Easter today, saying it is “a time of reflection and a time of joy”.