ME Bank's household financial comfort index rose eight per cent in the six months to December to stand at the highest level in its three-year history.
In June 2014 the index fell three per cent in an immediate response to the budget, growing worries over the jobs market, low wage growth and falling savings.
"Fast-forward to December 2014 and the financial psychology of Australian households has changed dramatically for the better," ME Bank consulting economist Jeff Oughton says.
While just over half the 1500 people polled still expect the budget will have a negative impact on their financial situation, this was down from the more than two-thirds of respondents who were fretting in June.
But a big contributor to the overall rise in confidence was the belief of improved job availability and job security.
Almost five in 10 per people said it would be easy getting a job within two months if they were unemployed, up from over three in 10 previously.
Nearly three-quarters of people also now felt secure in their current employment.
