More than eight million Australians expect a tax return of almost $1,200 as the Australian Taxation Office delivers much needed cash to embattled households.
Research from ING shows the average expected return for the 2026 financial year is up to $1,189.05.
This is a $12.25 increase from last year’s return, although the total amount taxpayers are expecting is significantly lower.
ING said the total expected cash injection is approximately $9.7 billion, but this is $1.5 billion less than the expected $11.2 billion return in the 2025 financial year.
About 8.15 million Australians anticipate a return, below the more than 10 million in the prior year.
The much-needed cash injection comes as inflation has lifted four per cent in the 12 months to May, while the Reserve Bank of Australia was forced to lift interest rates three times.
Rate rises have added $272 per month to mortgage repayments for a household owing $600,000 on their 25-year loan.
This year’s tax returns are not expected to be spent on a massive retail splurge as many Aussies put cash away in a rainy-day fund.
ING data shows 23 per cent of Australians are planning to put their tax return towards their emergency fund – a four per cent increase on last year.
Matt Bowen, the head of consumer and market insights at ING, said the change had been growing over the past few years as financial pressures built.
“When cost of living is high and household budgets are stretched, when the unexpected pops up, often it becomes a big spotlight on: ‘Do I actually have an emergency fund or do I have funds (set) aside’,” he told SkyNews.com.au.
ING’s research showed the number of Australians putting their tax return into their general savings dropped seven per cent compared to 2025.
However, the number of taxpayers using their return to pay off debt is up three per cent to 13 per cent.
The expected tax refund for the 2026 financial year is lower than last year’s cash injection.
More than 10 million Aussies expected a $1,519 cash injection for the 2025 financial year.
A survey from comparison site Finder revealed about 47 per cent of taxpayers expect a tax refund.
This would have delivered a total of $15.3 billion back into the pockets of everyday shoppers across the nation.
Another Finder survey conducted in the lead up to the end of the 2024 financial year revealed more than nine million Aussies would see $1,288 going back into their pocket, with a total of $12 billion going to taxpayers.
Of those getting a refund, one in 10 said the cash was critical for their financial wellbeing, while one in four of those surveyed said the refund was very important.
Another 43 per cent said the money was important, making the money a priority for more than three-quarters of those receiving a tax return.