If you’re one of the many lucky Australians who are going to get a tax rebate this year, you might be thinking how best to spend that unexpected windfall. The Australian Taxation Office tells us that the average rebate is just over $2,000: not a small amount by any stretch of the imagination, so it’s best to use it properly.
To help you make the most of it, here are three ways you could use that rebate to make your own life easier.
1) Pay off your home loan
It might not be as glamorous or as exciting as other options, but choosing to use your rebate to pay off your home loan doesn’t only save you money in interest: It could help you stay healthier too.
The Australian Psychological Society Stress and Wellbeing Survey found that the number one cause of stress in Australia is personal finances. Take some of that load off and use your rebate to take another chunk out of your mortgage.
2) Stash it in your savings
Rainy days can come in many forms. A cracked tooth, a car breakdown, the need to replace an appliance: For when those costs are too small to be worth being claimed on your insurance, it’s best to have a little bit tucked away for an emergency.
Our recommendation is to put that money into a high-interest savings account. That way, you are using your rebate to generate more wealth as well as have easy access in case you suffer one of life’s little misfortunes.
3) Reward yourself
Of course, no list of tax rebate suggestions would be complete without the obvious option! If you’re on top of your repayments, have a solid savings scheme or simply want to get away from the trials of life for a little while, there’s no better way than to treat yourself in some small way.
Improve your home, upgrade your appliances, even take a short weekend away. That lump sum could be your ticket to finally being able to get or do that one thing you haven’t been able to justify otherwise. You can still be sensible even while treating yourself!
Your tax return could give you the chance to pay off debts, go on holiday or just plump up your savings. Whatever you decide to do, make sure you get in touch with the team at Police Bank for a wide range of options that could be perfect for your tax rebate.