Newspaper article The Chronicle (Toowoomba, Australia)

Benefit from Your Tax Refund; Top 10 Ways to Make Your Refund Work to Your Advantage

Newspaper article The Chronicle (Toowoomba, Australia)

Benefit from Your Tax Refund; Top 10 Ways to Make Your Refund Work to Your Advantage

Article excerpt

ACCORDING to the latest ATO figures, there have been 4.37 million refunds issued to taxpayers since 1 July 2011. With these refunds totalling $10.24billion, the average tax refund for these lucky taxpayers has been $2367.

For those have been fortunate enough to receive it, Adrian Raftery, author of 101 Ways to Save Money on Your Tax a Legally!, gives us 10 smart places to use your refund:

1. Annual one-off expenses a[pounds sterling] such as the car rego, council rates and insurance a[pounds sterling] these expenses always pop up when we are struggling for cash and make a huge dent when they we get them.

2. Super co-contribution a[pounds sterling] The thought of superannuation may be dull and boring but it is one of the best investment vehicles for your money. The quicker you can build up your nest egg, the less risk that you will need to take later in life. The Government has given some great tax incentives to help boost those retirement savings. These include the co-contribution where they match your $1,000 super contribution dollar for dollar if you earn under $31,920 right through to no tax on withdrawing super when you retire.

3. Pay off your debt a[pounds sterling] The very first thing to do when you come into money is to pay off your debts starting with those with the highest interest rate. There is no point earning 6.5% with a term deposit if you are paying 20% on your credit card debt. All debt is bad debt but make sure you pay off the non-tax deductible debt first.

4. Save for a rainy day - What would happen if there was a GFC Mark II? Last time the Government bailed us out with their stimulus packages but we may not be so lucky next time around. Don't get caught out. All good emergency plans should have a minimum of three months' worth of living expenses put aside in case of job loss or injury. Don't stress if you don't have enough funds now. Simply start putting a regular amount aside from every pay. But remain disciplined and don't access these funds until you have to!

5. Money makes money - There are some excellent interest rates being offered at the moment online. …

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