Millions of Australians on pensions and low incomes are about to get cash hits from the government, which it hopes will give another boost to the coronavirus-hit economy.

The second round of $750 payments for pensioners, veterans and carers will start going into people’s bank accounts from Monday. It goes to about five million Australians at a cost of $3.8 billion.

Treasurer Josh Frydenberg anticipates many will spend the money on everyday expenses like groceries, rent and bills.

“This will come at an important time for many people being challenged by the economic consequences of COVID-19,” he told reporters on Monday. A record number of people have already lodged their tax returns and will receive any refund owed from this week.

The government anticipates more than 10 million people earning under $126,000 will get a tax break of up to $1080. More people could end up getting the tax offset if those who have lost jobs or part of their income because of coronavirus drop into lower tax brackets.

The government is considering bringing forward the next stage of its already legislated tax cuts, but won’t reveal its decision until the October 6 budget. Mr Frydenberg will outline the next phase of coronavirus support measures in an economic update on July 23, including the fate of the JobKeeper wage subsidy and the enhanced JobSeeker dole payment which are legislated to end in September.

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