Almost one in three Australian home owners will use their tax cut windfall announced in the recent Federal Budget to help pay off their mortgage, according to research.

The Federal Government announced more than $31 billion of tax cuts in the next four years, meaning an income earner on $30,000 will get a tax cut of approximately $21 a week.

The survey taken in the two days immediately following the recent Federal Budget revealed that financial priorities are top of mind with saving for a rainy day and reducing credit card debt coming in a close second and third, behind paying off the mortgage.

Australians are placing a greater priority on getting their household balance sheet in check as opposed to splashing out on consumer items.

"Australian home owners have experienced eight consecutive rate rises, so it's little surprise that burrowing $21 a week into their mortgage will offer them some peace of mind."

The research also revealed that despite the fact a large number of home owners will put their tax cuts towards their mortgage, 84 per cent actually underestimated the true savings.

"Eighty-four per cent thought an extra $21 a week would reduce their loan term by two or five years, however in reality on an average mortgage* of $350,000 an extra $21 a week would reduce their loan term by nine years," Bouris said.

"To boot, they will also save over $197,000 over the life of the loan.

"It's clear the majority of Australian home owners understand that simple steps such as paying their tax cuts into their mortgage will put them on the financial front foot and provide a buffer against any future rate rises," Bouris said.

* The calculation is based on a Wizard Smart Choice Loan of $350,000 at an interest rate of 7.72% with an original loan term of 30 years and regular fortnightly repayments. The savings calculation is based on contributing the $21 tax cut as an extra fortnightly payment of $42.