How big should your emergency fund be in Australia?
Updated 2026-10-15 · Australia
Short answer
Moneysmart suggests a good target is enough to cover three months of expenses. Base it on essentials — rent or mortgage, bills, groceries, transport and minimum debt repayments. Consider more months if your income is irregular, you're the only earner, or you have dependants. Keep it in a separate, easy-to-access account.
Work out your number
- Add up one month of essentials only.
- Multiply by 3 (Moneysmart's suggested target), or more if your income is less secure.
- That's your target. Divide by your pays to the target date for a per-pay amount.
Example
Essentials of $3,800 a month × 4 months = $15,200. Over 18 months of fortnightly pay (39 pays) that's $390 a pay.
Where to keep it
A separate high-interest savings account or a mortgage offset — somewhere you can reach quickly but won't spend by accident.
Frequently asked questions
Does an offset account count?
Yes, many homeowners keep their buffer in an offset.
Should I invest it?
Emergency money is usually kept in cash so it's there when you need it.
Sources
Last checked 2026-10-15.