Just above 10% of the Australians intend to put their latest tax refunds (if any) into renovations. 21% wish to use it to tackle their mortgage liability. Venessa Paech discusses the trend in a piece for the website realestate.com.au.
How Australians like to use their tax refunds
Roughly 33% plan to clear their credit card dues with the refunds. When it came to paying off mortgage liability with the tax refunds, those who are in the age bracket 45-64 showed double eagerness than those in the age bracket 18-24 (expected I guess!)
It is interesting to note that about 26% of the respondents are eyeing the savings account to park their tax refunds.
You can read the original article here.
2/3rd Aussies fetching tax refunds is some serious stats
Stats show that nearly 2/3rd Australians expect some kind of a tax refund for tax filed during the 2013-14 ‘financial’. This figure automatically makes the refund thing serious business. In my opinion, throwing this money over some luxury purchase or on a world trip can be a wrong move.
Australians should look to clear mortgage with tax refunds
I recommend using tax refunds for clearing mortgage liability. I will give you an example to boot home my point. Let us say you fetch a tax refund of $2,000 each year. If you have a $300,000 loan taken for a duration of 30 years, using $2,000 a year can save you something like $77,000 over such a course of time. Of course, your return might even increase during this tenure.
Such an amount can supplement your retirement nest egg a great deal. Certainly an idea to consider for a generation which doesn’t wish to think too much about its retirement planning!
Where do you park your tax refunds?
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