How Australians Will Spend Their Tax Refund This Year
As of last week, it’s officially tax season again – which above all else means that if you earn money and pay tax, you’re likely to get a chunk of that tax back soon enough. If you’re confused about how tax returns, tax-free thresholds and deductions actually work (who isn’t?) we’ve collated a go-to guide on everything you need to know about tax but still don’t. But let’s flash forward to the good part, AKA your potential tax refund.
Australian Securities & Investments Commission (ASIC)’s MoneySmart guide have compiled a handy infographic on our annual tax habits.
According to the ATO, 82% of taxpayers will receive a refund this year. Interestingly, 26% of Australians prefer to do their own tax without the help of a broker, which is very impressive.
The average tax refund, according to the ATO, is a solid $2,112. So what are the average Australians spending that money on? MoneySmart‘s August 2015 poll revealed that the majority of you are so responsible and savvy, we could cry.
The breakdown is that almost a third of us (29%) will probably spend it on paying bills, and 21% of Australians plan to save their tax refund, opting to pop it in a high-interest savings account rather than spend it straight away. This is followed by 13% using it to pay back loans or credit card payments, with another 9% using their tax return to pay off a home loan.
Speaking of spending however, 5% of MoneySmart users said they would use their refunds on a holiday, and another 2% would use it to buy household appliances. The additional 5% of respondents spent theirs on ‘other items’ including engagement rings, education expenses, car registration or even put it towards a party.
Get prepped for the months ahead by reading The Cusp‘s extensive guide to tax season here and watching our very intense quiz about tax below (someone gets a pie to the face – it’s hilarious).
Rebecca Russo is a freelance writer, editor, community radio dabbler, occasional hiker and celebrity autobiography enthusiast. She has written for online publications including Junkee, AWOL, Fashion Journal and Tone Deaf. Find her online here.