Australians have amassed a $424 billion ‘war chest’ of private savings which the Federal Treasurer says will fuel the nation’s economic recovery.

Josh Frydenberg says the money — made up of $245 billion in household savings and $179 in business savings — has been saved “a combination of ways”.

“Firstly, people not being able to travel as much, people not being able to go to cafes and restaurants … the tax cuts that have flowed into people’s pockets … and of course people have also been more cautious,” he told Ross and Russel.

“We’re starting to see that money being spent.

“Business investment, for example, is particularly strong despite the pandemic.”

Press PLAY below to hear more on the savings Aussies have amassed, unemployment, and housing