Money

The Smartest Things To Do With Your Tax Return

The end of financial year can be exciting for some – a refund is kind of like secret savings that you didn’t even know you had until you have it, and all in one lump sum.

When the ATO comes through with the goods, you want to make sure you get the most out of your tax return. While it’s easy to fritter it away on all the shiny things that catch your eye in the stores, why not do yourself a favour and use it a bit more wisely?

It turns out most people are pretty sensible when it comes to their tax return. A survey of tax payers has found 82% of Australians lodge on time, and the average refund is $2,112. Not bad!

The ASIC figures show 29% of people use their refund to pay bills, which is unsexy but sensible. 21% of people opt to put it into a high interest savings account, which frankly, makes us feel proud as punch.

5% are spending their dollars on a holiday, while another 5% are putting their money towards other expenses like car registration, engagement rings, or even parties.

But we’re here to tell you how to use your tax refund in a way that would make your accountant cry tears of joy. Here’s how the smart people of the world are using their tax refunds in 2017.

If you got more than $5000

Getting a sizeable tax refund can feel like winning the lottery. Is there any better feeling than seeing a comma in your bank balance? Yes, actually – making that money grow.

Term deposits are a super easy, and non-scary way to invest your newfound riches.

Westpac have your back every step of the way, with their term deposits allowing you to invest your money with the certainty of a fixed rate and a choice of terms that are tailored to your needs.

Once you have your funds ready to go, applying for a term deposit is incredibly easy – basically the same process as opening a new bank account. You can even use Westpac’s Term Deposit calculator to find out how much you’ll earn from your new investment.

If you got less than $5000

This is what we call “playing the long game”. Being a bona fide smarty pants now will leave you pretty damn comfortable in a few decade’s time if you make a voluntary super contribution.

This is a great option – it’s basically like Christmas and you’re both the giver and receiver. Not only will you feel good for leaving some money aside for future you, but future you will be super (heh) chuffed and proud when they collect it – double win.

If you want to find out what you need to do in order to get yourself set up for a voluntary super contribution, check out the terms on Westpac’s website. Alternatively, if you’re looking for a new super fund, BT offers a range of options that are will support you throughout your working life, and through retirement.

A Westpac term deposit offers you certainty over the return on your deposit, with a range of options when your deposit reaches maturity. If you’re playing the long game, BT’s Super for Life has a range of benefits and you can manage your super online alongside your everyday banking.

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