Are you wondering how to proceed what your tax refund? Perhaps you can try something new that could make you more economically comfortable.
Your annual tax refund is actually a good time to save lots of, eliminate debt or take action ‘long-term’ for your children.
This year, before you race off to the shops on a spending spree or make a spur of as soon as purchase, you could consider a few smarter ways for taking this year’s tax refund and put it to work for you.
Super contribution top-up
Corresponding to ASIC, an individual who retires at 65 with a ‘modest’ lifestyle (with annual living expenses around $23,000) will need $300,000 in the current money to retire. Those who want a ‘comfortable’ lifestyle (with bills of $41,830 per calendar year) will require at least $544,000 to retire.
For the majority of us, those are some big numbers. Boosting your ultra early-on means there’s more time for your super fund to develop.
Just contact your superannuation fund or advisor for advice and understand how to transfer your 2016 taxes refund into the super account – your “future do it yourself” will many thanks when you retire!
Buy work related equipment items which cost over $300 now, for an improved deduction on next year’s tax return
If you have been having off on purchasing any big-ticket work related items like pcs, tools and work equipment, using your 2016 tax refund could be a good option.
Work related items which cost you more than $300 need to be depreciated over the “effective life” of that.
Get one of these micro-investment
Many Australians are thinking about investment but aren’t sure how to start or can’t commit large amounts of money for buying shares. That’s why micro investing is an interesting new option.
Save your taxes refund in a term first deposit for your children:
You could reserve your tax refunds to pay future big-ticket bills for your kids. You can pop your refund into an extended term deposit in your loan provider and earmark it for his or her college or university education, or their first car. More details here.
Whenever your children are aged, you can provide them a good leg-up with out a hard strike to your wallet.
Pay off credit card debt or loans:
Do you have a debit card debt or an individual loan you appear to be paying down forever?
Consider using your tax refund to lower your personal credit card debt or pay it off. Your interest repayments will drop as soon as you lower your excellent balance and once you’re arrears free, you can begin making use of your money for you, alternatively than adding to the bank’s income by paying credit-based card interest repayments.
Put your tax refund into a mortgage offset account:
If you a mortgage, it’s likely your mortgage company offers a mortgage offset option.
A mortgage offset is essentially a savings account where, instead of getting interest on your personal savings every month, your offset account balance is subtracted from your exceptional mortgage loan balance simply for the purpose of calculating the interest element of your mortgage repayment.
This means you’ll finish up paying less interest on your mortgage, giving additional money in your pocket and helping you pay your mortgage loan off more quickly (while your offset balance is still free that you should use, if you want it). Check more at www.taxreturn247.com.au.