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If you’re one of the many Australians expecting a tax refund this year, you might already be mentally spending it. New sneakers? Weekend away? New Oura Ring and a scented candle, you definitely needed?
Before you click ‘add to cart’, take a minute to read our ideas below.
In 2022, of those who received a tax refund in Australia, the average tax refund sat at $2,576. Even if yours is less, this is still a pretty decent cash injection if managed wisely. So, how can you make the most of it? We’ve broken it down from low-risk, smart-money moves all the way to ‘treat yourself and have a life’ territory.
Let’s start where it counts. Using your tax refund to pay off debt can be one of the most effective ways to boost your financial well-being.
But where do you start?
This isn’t flashy. It won’t get many likes on Instagram. But it will earn future-you some serious peace of mind.
Once you’ve got your essentials sorted and paid for, consider putting your refund to work for long-term gain.
Yes, there’s risk. Remember, not every idea takes off. But reinvesting in yourself is rarely wasted.
Some people use their tax refund to kick-start their investing journey. Think index funds, micro-investing platforms, or even topping up your super. This strategy generally works best if your debts are under control and you’ve got a 3-6 month emergency fund set aside.
It’s not as instantly rewarding as a shopping spree, but the long game can be powerful as you see your returns grow.
Now, let’s be real. It’s tempting to blow it all on something flashy. Easy come, easy go right?
A new bag, a weekend out, an oversized LEGO set you justify as “collectible.” These are the high-risk, low-return plays.
But we’re not money monsters here at Beforepay! We know life’s for living, right?
So, no matter which way you allocate your tax refund, set aside a small amount, $50 or so, to celebrate smart money moves with a lunch out with a mate. Just don’t let it become a three-course all afternoon affair that eats your entire refund.
Tax refunds can take around 2 weeks to land if you lodge electronically. But if you're feeling the pinch now, options like a Tax Refund Advance with Beforepay and H&R Block can give you early access to your upcoming tax refund.
Your tax refund is a financial reset button. Use it wisely.
With a little planning, this year’s refund could be the launchpad for less stress and more success.
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