TAX026 Smart Ways to Use Your Tax Refund This Year (728 words)

There are plenty of better ways to use your tax refund than spending all of it on something that will only bring fleeting enjoyment rather than enduring wealth. Find out how to use at least some of it in smart strategies to improve your financial future.

You may be one of many Australians who make an interest-free loan to the federal government every year. That’s because, when you receive a tax refund, you’re not getting free money. All that’s happening is that cash which is rightfully yours is being returned, somewhat late. So it makes sense to make it work as hard as possible once it’s back in your hands.

You could, of course, simply spend all of your refund on updating your phone or taking a holiday, but while that may be fun, it’s not particularly smart. A much better idea is to use at least some of your refund in a way that will help you to afford more than one holiday and new phone in the future.

Eight financially savvy ways to use your tax refund