The tax season is upon us. Now you can hit the shops and spend all your tax refund on buying things you might not necessarily need. Or you can spend that money wisely; that will significantly impact your life and finances. Having said that, you might struggle to file your taxes adequately.
There are various ways to increase the refund amount you’re eligible for. However, you should consider working with a tax planner who can assist you in getting the most out of your tax return. Once you’ve received your return, there are various smart ways to use that refund to secure your financial future. Here are some ideas and ways to use your tax refunds wisely.
Pay Off Debt
According to the Australian Bureau of Statistics, many Australian households have some debt. Debt can take various forms such as mortgages, credit cards, personal loans or a combination. More than a quarter of the figure had a debt three times more than their disposable income. You can use your tax returns to pay off some debt to reduce the burden on your household. You can save money on interest payments and pay off the debt quickly.
If you’re unsure how to spend your tax refund, you should consider putting the extra windfall into a savings account. You can choose an account that provides bonus interest for the first few months. This will allow you to top up your refund even further until you decide how you’d like to spend it.
You can also consider getting a term deposit. The account doesn’t allow you to access your funds for a set amount of time, which can reduce the temptation of spending the money immediately.
You can consider increasing your super by adding a personal contribution through your tax return. This will add to the existing compulsory superannuation contribution your employer makes on your behalf. However, certain caps may apply to contributions you make to your super in any tax year. You can find out more information through the ATO or speak to a tax planning service that can guide you accordingly.
You can consider investing in some shares with the extra money you receive through your tax returns. There are thousands of companies listed on the Australian Securities Exchange (ASX). However, be wary of putting all your eggs in one basket. There are several ways to diversify your investments, get healthy returns and mitigate the risk of volatility. You should consider getting the help of financial consulting services to help you find ways to invest smartly.
How Can Ace Biz Help?
One of the best ways to maximize your tax returns is to get the help of registered tax Agents who know all the requirements and laws pertinent to taxation and can help you get the maximum refund. If you’re looking for reliable accounting and taxation advisors, you can’t look past Ace Biz! We offer top-quality accounting advisory, business consulting, HR services, and more in NSW. Get in touch with our experts to ensure a seamless tax return process.