Stage three tax cuts set to help households ‘catch up’ to rate rises [Video]

Australian taxpayers are set to see more dollars appearing in their bank accounts each pay cycle as long-awaited tax cuts kick in.

The saving depends on tax brackets but federal government analysis shows the average full-time worker earning around $98,220 will be getting a cut of $2134 a year, or $41 a week.

Yet with higher mortgage repayments, rents and other living expenses, shoppers polled by AAP said any extra money would be going towards essentials, like groceries.

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Some had other ideas, such as using it to support family overseas, while others were not aware the tax cuts were coming into effect from Monday at all.

Compare the Market economic director David Koch said some people might be thinking they were about to get a lump sum but it would instead be coming in “dribs and drabs” in each pay cycle.

He suspected many would not notice the extra cash, …