A quarter of Australian households have less than $1000 in savings and one in 10 are spending all their income and more each month, a new report has found, as regulators look to address the impact of rising household debt on the economy.

The Household Financial Comfort survey of 1500 households in June found the estimated amount Australians are saving each month decreased by just over 10 per cent during the first half of 2018.

The number of households who typically spent more than their income increased 3 percentage points to 11 per cent during the six months to June. Up to 41 per cent spent their entire income but were not forced to go into savings.

The figures are likely to raise concerns within the Reserve Bank and Treasury, as more Australians overspend their incomes to meet rising cost of essential services such as health and education which have seen prices rise above inflation.