A third of households with less income

COVID-19 is having a negative impact on the income of one-third of Australians, according to a new survey. And close to half believe the pandemic will have a long-term negative impact on their household finances.

According to the ME COVID-19 Financial Sentiment Snapshot, 33 per cent of people have suffered a drop in income. Fifty-six per cent said their income remained the same and 11 per cent said it had increased.

Forty-four per cent said they expect COVID-19 "to have a negative effect on their household's finances long term."

Among those who expressed negative sentiment about the future, 63 per cent said they were uncertain about the economy, 40 per cent said they were unable to save money, 38 per cent said their investment have been negatively impacted, 35 per cent said they were spending more on essential items and 29 per cent were worried about the security of their job.

Among those whose income had stayed the same or increased, 47 per cent reported that they had increased their savings.

ME Money Expert Matthew Read said the high level of increased savings was an indication that households were feeling uncertain and wanted a bigger financial buffer.