Bank data shows households have stashed away almost all the extra income they’ve received so far due to the stage three tax cuts, easing concerns the cash would fuel a spending binge that would send inflation higher.

The tax cuts, which came into effect on July 1, have so far put $6.4 billion extra back into the economy, Westpac estimates, but about 84 per cent of this money has gone into offset and deposit accounts, an analysis of 1 million customer accounts shows.