After years of tightening belts and saying “not now” to life’s little luxuries, Australians are finally loosening the purse strings, and spending money that hasn’t even quite landed in their accounts.

According to recent ING Australia data, Aussies have already spent a staggering $1.8 billion in anticipation of their tax returns.

Now it’s rare that we get excited about numbers, but tax time is the odd occasion, and this figure might just be sending a signal of intent.

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After years of navigating cost-of-living pressures, rising interest rates, and economic uncertainty, it feels like households might finally be sensing a shift. Confidence is slowly returning, and with it, a willingness to indulge in the things we’ve long deferred.

This isn’t reckless spending. It’s a release valve.

In recent years, many Australians have had to focus on the essentials.

Travel plans were shelved, big purchases postponed, and fun extras like nights out or gadgets often put on hold. But now, with inflation easing and the Reserve Bank signalling a more stable outlook, many households are feeling cautiously optimistic.

And the humble tax return is considered a windfall that is perceived by many as worthy of a little splurge, particularly for the younger generation who have felt the impact of a difficult economy most acutely.

Millennials and Gen Z are significantly more likely to dip into their expected refunds early. 60 per cent of Millennials and 50 per cent of Gen Z say they’ve already spent or plan to spend at least some of their refund before it’s confirmed – compared to just 23 per cent of Gen X and 12 per cent of Baby Boomers.

The typical splurge list consists of the things that are a little more indulgent.

• A new phone or laptop (27 per cent)
• New furniture (22 per cent)
• Fine dining or an expensive night out, home renovations or an expensive overseas trip (16%)
• Concert or festival tickets (13 per cent)
• Collectibles, like Labubus (12 per cent)

Economy ready to thrive

After years of restraint, it looks like Australians might be ready to say yes again. Yes to upgrading the family TV. Yes to booking that long-overdue holiday. Yes to a night out that doesn’t involve a spreadsheet.

And this isn’t just good news for households -it’s encouraging for the broader economy too.

When people feel confident enough to spend, it helps businesses grow, which in turn supports job creation. It’s a gentle ripple effect, and it’s starting to move in a hopeful direction.

Whether you decide to splurge it, save it or spend it wisely the key is to not let the end of financial year be only about tax returns, but also an opportune time you do some interrogation of your overall financial position.

Understand the ins and outs of your budget and use this as a moment to course correct for the financial year ahead.