•   
  •   

MoneyConsumers plan to save tax refunds as confidence drops, Westpac survey shows

01:01  12 september  2019
01:01  12 september  2019 Source:   msn.com

Dramatic video shows people in Bahamas swimming through rushing floodwaters

Dramatic video shows people in Bahamas swimming through rushing floodwaters Dorian slammed into the Bahamas as a Category 5 storm, killing at least 5.

Hopes of a tax cut-led retail recovery appear dented as Westpac 's regular consumer sentiment survey shows the majority of people plan to save most of their refund rather than spend it.

'Troubling': Consumer confidence drops to two-year low despite tax and rate cuts. "The muted sentiment response to both interest rate cuts and tax relief may stem from the fact that both Mr Hassan said the survey suggested confidence in the housing market was holding but consumers

Consumers plan to save tax refunds as confidence drops, Westpac survey shows© AAP Images Hopes of a tax cut-led retail recovery appear dented as Westpac's regular consumer sentiment survey shows the majority of people plan to save most of their refund rather than spend it.

Hopes of a tax cut-led retail recovery appear dented as Westpac's regular consumer sentiment survey shows the majority of people plan to save most of their refund rather than spend it.

The bank and Melbourne Institute added extra questions to their monthly questionnaire of consumers, asking people about the tax offset payments that came through from July 1 in tax returns.

So far, 16 per cent of those surveyed reported receiving a payment, while Westpac's economists estimate that about 30 per cent of households are likely to receive a "meaningful" rebate.

New discovery shows how T. rex kept its brain cool

New discovery shows how T. rex kept its brain cool It’s hard to keep big heads cool. Tissues rich with blood vessels solved the problem for some dinosaurs.

According to the National Retail Federation’s annual Tax Returns Survey conducted by Prosper Insights and Analytics, 49.2 percent of those expecting a refund plan to save “Young consumers see their refund as an opportunity to build their savings without making a dent in their monthly budget.”

The fall in confidence showed subdued interest towards savings, investments, jobs and spending, the study added. Besides, a rise in inflation is The index, prepared by Thomson Reuters in partnership with Ipsos, reflects monthly national survey of consumer attitudes on the current and future state of

Of those who had already received a payment, 29 per cent said they planned to spend it all, while 16 per cent planned to spend more than half of it.

That left more than half of survey respondents saying that they would spend less than half of their tax offset, with a quarter saying they would save the full amount.

Record number 'don't know' where to put their savings

This tendency towards savings fits in with other, regular, aspects of the survey that show households continue to remain cautious about their financial positions.

Overall, pessimists again narrowly outnumbered optimists, with the index reading 98.2 — below the benchmark 100 number that indicates an evenly balanced view.

The index hit 100 last month after several months of pessimism.

ATO's treatment of whistleblowers is 'scandalous', says submission to federal inquiry

ATO's treatment of whistleblowers is 'scandalous', says submission to federal inquiry Australia's tax watchdog should be given powers to protect whistleblowers that make public interest disclosures, according to submissions to a federal inquiry. The call comes as former Australian Taxation Office (ATO) public servant Richard Boyle faces the threat of life in prison for blowing the whistle on disturbing debt collection practices at the ATO. An inquiry looking into the performance of the nation's tax ombudsman, the Inspector-General of Taxation, has heard it needs to have binding powers to ensure it can properly fulfil its job of keeping watch over the ATO and handling taxpayer complaints.

Most US consumers expect to get a tax refund this year, and they plan to stick their windfall in the piggy bank. Coupon distributor Valassis surveyed 1,000 US adults who anticipated receiving a 2019 tax refund and found that more than half planned to save most, if not all, of it.

The Westpac McDermott Miller survey released on Wednesday shows the lowest level of consumer confidence as measured by that survey for six years. Westpac economists say the drop in confidence "gives genuine cause for concern about how the economy is progressing".

When asked where the wisest place to put their savings was, 61 per cent nominated safer options such as deposits, superannuation or paying down debt.

There was a slight increase in the proportion nominating real estate investment (to 12 per cent), a slight decrease in those favouring shares (to 9 per cent) but a stunning increase in the proportion who said "don't know" which, at 9 per cent, was the highest in the survey's history dating back to 1974.

With interest rates at fresh record lows, the share market close to record highs and many major housing markets still relatively expensive and offering historically low rental returns, it perhaps is not surprising that people are struggling to decide how to invest their money.

"Many Aussies are confused about what to do with their money in the current environment," CommSec chief economist Craig James said.

"While low interest rates may be seen as positive for borrowers, the fact that the cash rate is at all-time lows of just 1 per cent worries plenty of Aussies."

The dark truth about Qantas' Frequent Flyer programme: Watchdog issues urgent warning to consumers that airline is pillaging their data

The dark truth about Qantas' Frequent Flyer programme: Watchdog issues urgent warning to consumers that airline is pillaging their data Qantas is one of four major companies named in the Australian Competition and Consumer Commission's (ACCC) loyalty and reward scheme draft report. While most loyalty schemes offer consumers the chance to obtain points or another type of reward, many customers were being kept in the dark over what was happening to their personal information, ACCC chairman Rod Sims said. 'They aren't just giving you freebies in return for your loyalty, they are actually using your data to make a lot of money,' he told the Sydney Morning Herald.

Other plans for tax refunds include paying down debt (35 percent), travel/entertainment (22 percent), retail Eighty percent of Americans expecting a tax refund this year plan to save 25 percent or more, according “This may be the year consumers give themselves breathing room by building up their

Consumer Confidence Survey ®. The monthly Consumer Confidence Survey ®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch.

Mixed economic outlook but house prices expected to rise

This is particularly so given the wary outlook most survey respondents had when it came to the Australian economy.

Consumer views about the health of the economy over the next year declined 3.1 per cent in September.

"The disappointing June quarter national accounts update — released in the middle of the survey week — undoubtedly had an effect," Westpac's chief economist Bill Evans noted.

"Despite this, expectations for the economy are still comfortably above their July low, when the RBA's back-to-back rate cuts appear to have badly rattled consumers."

AMP Capital senior economist Diana Mousina said the negative press around the GDP number and international economic developments risked becoming a self-fulfilling prophecy.

"There is a risk that the continual negative news around the domestic economy talks consumers into thinking that conditions are weaker than they actually are," she wrote.

"The same is true of all the recession talk."

The survey shows people are more worried than usual about the security of their jobs and also much less likely than usual to think now was a good time to buy a major household item.

However, households are more confident about the longer-term outlook, with positivity about the economy over the next five years rising 2.1 per cent this month and sitting comfortably above the long-term average.

People also think the housing market downturn has well and truly bottomed, with house price expectations surging 45.8 per cent since May, led by a large increase in New South Wales.

The expectation of rising prices has less people saying that now is a good time to buy a house, though that index is still above its long-term average following roughly two years of national dwelling price declines.

Read more

Qantas, Virgin bosses say lack of monopoly regulation on airports squeezing consumers and airlines dry.
The chief executives of Qantas and Virgin will meet with Treasurer Josh Frydenberg to urge airports to stop charging excessive landing fees, but an airport boss says the airlines are likely to keep any savings as profit.

—   Share news in the SOC. Networks

Topical videos:

usr: 1
This is interesting!