Seventy per cent of Australian taxpayers are likely to get a refund this year according to the ATO, which knows a thing or two about these things.
And better yet, the average refund is a handy $3,140; not a bad early Christmas present for people who managed to lodge their return on time.
So what do we spend all this booty on? Well, MoneySmart asked a couple of thousand Australians what they did with their return last year. Here’s what they said.
How we spent our tax returns
- 31% – Saved it
- 24% – Paid bills
- 18% – Loan or credit card payments
- 11% – Home loan
- 7% – Holiday
- 7% – Other things (engagement rings, education, cars, parties)
- 2% – Household appliances
All in all, it looks like we’re a pretty sensible (boring?) bunch. Very few of us are game to admit that we blew the lot on a new TV or a wild weekend in Vegas.
Getting ready to spend? How to score the best deals.
What we should be spending it on?
For those people lucky enough to be sitting on a glorious little refund right now, here’s what the folks at MoneySmart recommend you do with it.
- Pay down debts
Always a great idea. Savings pay 4%, debts cost from 5% – 20%. Do the maths.
- Stash it away
Everyone should have an emergency fund in case the worst happens. Otherwise, you could always kick some into your super or stash it away for a home deposit.
- Reward yourself
That’s right, even ASIC think we’re being we’re being a little too sensible with these unexpected windfalls. So, let loose a little people, or, in the words of Tom and Donna from Parks and Recreation, “Treat yo self”.
Main image: William Warby, Flickr
