With the end of financial year recently coming to a close, many Australians have now found themselves with some extra cash in their pockets thanks to the ATO and their tax returns. In the past, people were rushing out the door to splurge their tax returns on luxury items. However, those days are no longer. People are now becoming savvy with their tax returns and using them proactively to save for the future or pay off debts.
According to an article on Yahoo 7 Finance, a recent survey by RateCity found 40% of those expecting tax refunds will use their refund to repay debt, 23% will save the cash and 37% were unsure as to what they were doing with their tax return. This represents a change in the attitudes of Australian’s with more people now taking a cautious approach with their money. The survey found the younger groups (18-29 year olds) and the elder groups (60-64 years old) had the highest proportion of respondents in these groups who intended to save their refund. Credit cards and personal loans were the most popular debt to pay off using tax returns.
It is no surprise Australian’s are taking any chance they can to save money. According to an article earlier in the year from news.com.au, more than half of the survey respondents from MeBank’s Household Financial Comfort Report stated they have nothing left after meeting expenses and are finding it hard to save money. In tough economic times, saving and smart financial management is becoming increasingly important.
By the 31st of October, 2.68 million e-tax lodgements had been made. Were you one of them? If not, there is still time to get your tax done the right way with Fortis Accounting Partners! Please don’t hesitate to get in touch with the team on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
