We frequently get asked about the best ways to spend your tax refund, so we’ve put up a short list of advice and suggestions!

How Should You Spend Your Tax Refund To Advance?

1. Clear Your Debt

Paying off any bills or credit cards with your tax refund is probably the best use. Even if the advice might not be popular, debt can accumulate quickly. It’s a good idea to pay off any debt you may have rather than keeping it in your savings account. A good and practical strategy to advance is to make additional payments toward any debt.

Start by paying off your highest interest-rate obligations, typically credit cards.

2. Super Contribution Voluntarily

Superannuation may sound dull, but it’s one of the best things you can do with your tax refund. It will rank among your top long-term investments. If you make a decent salary, you can also be qualified for a $500 annual government co-contribution. Your superannuation is taxed at a low rate of 15%. The free money has boosted your funds. Then, when you combine that with the compound interest your super earns, you have a solid head start on a happy, early retirement.

3. Education

You can make a voluntary repayment on a HECS-HELP debt. This can be refinanced in the future to the present HELP loan ceiling. Your voluntary refunds will be credited to your “HELP balance” starting January 1, 2020.

4. Term Deposit

Avoiding all spending on your tax refund is one of the best ways to use it! You can increase your earnings if you transfer them to a high-interest term deposit or savings account. By doing this, you can earn the most interest.

5. Among The Best Methods To Spend Your Tax Refund? Prepare For Hefty Bills

It seems like all of our bills arrive at once throughout the year. Start preparing now rather than waiting and charging some of these expenses on your credit card. You won’t need to use your credit card as much if you have the money in the bank to pay for that rate notice, your vehicle’s registration, or your insurance. This makes paying your payments on time so much simpler.

Need Assistance To File Your Income Tax?

The law mandates that everyone in Australia who earns more than the $18,200 tax-free threshold file an income tax return. KPG Taxation is available to quickly and effectively file your tax return. We can offer the best advice for tax planning and filing because of our depth of knowledge. Call us now! We’re here to make everything simple and stress-free.