Skip to content
  • About Us
  • Our Team
  • Services
    • Business Accounting and Taxation
    • Business Advisory
    • Superannuation
    • Personal Taxation
  • Industries
  • News
  • Contact Us
Menu
  • About Us
  • Our Team
  • Services
    • Business Accounting and Taxation
    • Business Advisory
    • Superannuation
    • Personal Taxation
  • Industries
  • News
  • Contact Us
1300 ARABON
  • About Us
  • Our Team
  • Services
    • Business Accounting and Taxation
    • Business Advisory
    • Superannuation
    • Personal Taxation
  • Industries
  • News
  • Contact Us
Arabon Accountants wise ways to spend tax refund

Five wise ways to spend your tax refund

23 August 2021

For those fortunate to expect a tax refund each year, there are wise ways to spend your tax refund.  For many, it can be an exciting time waiting for those hard-earned dollars to hit your bank account and planning what to spend their refund on.  This can often be an opportunity to treat yourself with something you may not otherwise be able to afford or a chance to spend it in ways that are smarter in the longer term.

This financial year in particular, you may receive a bigger than normal refund due to the income offset for low-to-middle earners and claiming work-from-home deductions due to COVID-19.

In this article, we detail five ‘wise’ ways to spend your tax refund and make it work for you.

Contribute to your super
You may be eligible for government co-contributions if you choose to make a voluntary contribution to your superannuation fund.  Not only does it boost your fund balance now, it means more cash for your future at no cost to you now.  While it may not be the fun way to spend your windfall, it can be a lucrative move for your future.

Obviously, the younger you are, the more time your super has to grow.  A voluntary contribution now however big or small, is likely to increase exponentially in time for your retirement.

Contribute to your ‘rainy-day’ account
Regardless of how much you earn, it is very important to have a rainy-day emergency fund.

Points to ponder: what if you are made redundant, your employer goes out of business, you or someone in your family becomes unwell, or an unplanned emergency repair is required on your home?  Your pot of emergency funds may well come in handy should this happen to you.

You can use your tax refund to start your fund or you can give it an extra boost.  Then you can continue to save something from each pay into this account for those ‘just in case’ situations.  It is often recommended to have around six months’ worth of funds tucked away to cover your basic living expenses like mortgage, rent and bills.

If you have an offset account attached to your home mortgage, this can be a great place to keep your funds so they’re working for you even when you don’t need them.

Pay your debts
Paying off your personal debts can feel good especially if you’re having trouble paying them otherwise.

You should consider paying down debts with the highest interest including credit cards, store cards or personal loans.  Following that you could pay off any bills that you owe.

Make smart investments
Financial Investments
You can use your tax return money to invest in shares or similar.  If you have a considerable amount, you may be in a position to buy or renovate an investment property.

Insurances
You may consider insurances for extra protection too.  Ensure you have adequate levels of asset insurance (home, contents, and car) as well as those that allow you to earn a living (health, income protection, life and total and permanent disability). Often, you’ll get a better deal if you pay insurances up-front annually.

Plan for your future
If you’re not sure what to do, your tax refund could go towards receiving professional financial advice from a financial planner.

You should consider all of the options available to make your tax return monies work for you.  While a personal splurge may feel good, often it feels better knowing you have invested your tax return sensibly.

Search
Loading...
Arabon Accountants important dates and updates from 1 July 2022

Important dates and updates from 1 July 2022

30 June 2022
Arabon Accountants national minimum wage increase

Fair Work Commission announces 5.2% national minimum wage increase

16 June 2022
Arabon Accountants changes to superannuation

Two important changes to superannuation from 1 July 2022

13 June 2022
Arabon Accountants top tips for tax time 2022

Top tax tips for businesses and individuals to prepare for your 2022 tax return

31 May 2022
Arabon Accountants four key priorities for ATO this tax time

Four priorities for the ATO this tax time

23 May 2022
1 2 … 25
  • Our Story
  • Our People
  • Our Services
  • Our Clients
  • Privacy Policy

1300 ARABON
arabon@arabon.com.au

Book An APPOINTMENT

Level 1, 655 Sherwood Road
Sherwood QLD 4075

Office 4, 91 West Burleigh Road Burleigh Waters QLD 4220

Social

Subscribe

(c) 2022 Arabon Accountants Pty Ltd ABN 91 600 325 540. Liability Limited by a scheme approved under Professional Standards Legislation. Registered Tax Agent Number 25620662. View our privacy policy.


Arabon Accountants acknowledges the Australian Aboriginal and Torres Strait Islander peoples as the first inhabitants of the nation and the traditional custodians of the lands we all enjoy. We pay our respects to ancestors and Elders past, present and emerging. We value and honour Australian Aboriginal and Torres Strait Islander peoples’ unique cultural and spiritual relationships to the land, waters and seas and their rich contribution to society. Arabon Accountants acknowledges the traditional owners of the land upon which our business is built, the Yuggera and Turrbal People.