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Smart ways to use your Tax Refund this year.

Are you wondering what to do with your tax refund this year?

 

This year, before you race off to the shops on a spending spree, consider a few smart ways to use your tax refund.

1. Super contribution top-up

According to ASIC, a single person who retires at 65 with a ‘modest’ lifestyle (with annual living expenses of about $23,000) will need $300,000 to retire. Those who want a ‘comfortable’ lifestyle (with living expenses of $41,830 per year) will need at least $544,000 to retire.

For most of us, those are big numbers. Making a contribution early-on means there’s more time for your super savings to grow.

Contact one of our Financial advisers for advice and learn how to transfer your 2018 tax refund into your super fund.

2. Buy work related equipment items, for a better deduction on next year’s return

If you’ve been holding off on purchasing any work related items like computers, tools and work equipment, using your 2018 tax refund could be a good option.

If you buy these items at the end of a financial year, the benefit on your next tax return will be very small. But if you buy a “Big Ticket” item early in the year – July or August – your depreciation calculation will cover more time and this means a bigger deduction on your next tax return. Our Accountants can offer advice on the best way to purchase work related items.

3. Save your tax refund in a term deposit for your children

You can put aside your tax refunds, year after year, so in the future you can cover future big-ticket expenses for your children. Save your refund in a long term deposit or another safe long-term, nterest-earning investment – later you can use it for your kids’ university education or their first car.

4. Pay off credit card debt or loans

Do you have a credit card debt or a personal loan you seem to be paying off forever?

Consider using your tax refund to lower your credit card debt or pay it off. Your interest repayments will drop as soon as you lower your outstanding balance. Once you’re debt free, start using your money for you, rather than contributing to the bank’s profits by paying credit card interest repayments.

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Phone: (03) 55 618 618
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Website: www.shbbusiness.com.au
Email: office@shbbusiness.com.au

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