Australians stashed more money in the bank at the beginning of the Omicron outbreak and Federal Treasurer Josh Frydenberg hopes it will be used to revitalise the nation's economy.
A sharp rise in household deposits of 1.7 per cent ($20.7 billion) occurred in December, APRA figures show, as the number of Australians sick with the latest coronavirus variant reached record levels.
The increase in deposits came as people shied away from going out in fear of catching the virus and reduced their spending, consumer surveys have shown.
NAB economist Taylor Nugent said deposits increased at the same time as previous virus outbreaks.
Asked on Melbourne radio about the increased savings, Mr Frydenberg said this was due to a number of factors.
He credited the government's tax cuts and income support, as well as people's reduced travel, for the greater savings.
Mr Frydenberg claimed people would use their savings to help businesses struggling from the Omicron wave.
"There is that money there that will be spent and will generate economic activity and of course jobs," he said.
