Tax Back Australia

Getting tax back Australia is almost an Australian tradition. A little like vegimite (well maybe not quite the same).

But what happens when we get our tax back Australia? When we do get our tax back it is very tempting to spend it. As tempting as it is to spend it on that special item believing you deserve it, consider other options that could be just as rewarding.

How to spend your Tax Refund:

1. Reduce your debt
The first option when you get your tax back Australia is make an extra payment towards your mortgage, credit card or a personal loan and avoid interest charges. Use this tool to calculate savings lumpsum mortgage calculator.

2. Look at investing
Don't underestimate the power of your tax back Australia to kick start or refocus an investment plan to create long-term wealth. Ask for a referral to our preferred financial advisor.

3. Make a personal superannuation contribution
A great option for your tax back Australia is to increase the balance of your superannuation fund to boost investment prospects and increase the income you receive when you retire. Changes since 1 July 2007 have made superannuation more tax effective. For a summary of those changes visit our blog post on superannuation changes.

4. Top up your savings
Another option for your tax back Australia is to start/add to a cash management or online savings account that offers higher interest rates than traditional bank accounts. Watch the tax you get back grow.

5. Seek professional advice
Finally, when you get your tax back Australia don't gamble it by implementing a poor wealth creation strategy. This is particularly important if you are due to receive a large amount of tax back in Australia.

Seek professional advice and create an investment plan that meets your personal financial objectives - for example, speak to one of our professional investment property advisors. You may be supprised to learn that an investment property can be acquired for as little as a regular car payment.

While getting tax back Australia is a great tradition, think again before you spend it - you may come up with an idea to change tax back Australia in to money back when you retire.

D Maynard
CEO My Tax Zone

Copyright 2014. My Tax Zone.