Sources: ABS; APRA; RBA  Furthermore, households have saved a large amount of money since the onset of the pandemic – around $ billion. These savings have been put into redraw facilities as well as offset and deposit accounts. This reflects a couple of factors. Considerable government support was provided to households and their employers during the pandemic.
This meant that incomes held up very well. The banking system also helped households and businesses to weather the crisis by providing payment holidays and working with their customers to recommence repayments as their situation permitted. Both of these factors were good for household cash flows. At the same time, consumption opportunities were curtailed, particularly for discretionary services.