How are Australians spending their tax returns? 

Firstly, for interests sake, approximately 70% of Australians get a tax return. Remember it is not guaranteed and sometimes you actually owe more! So don’t go spending before you know what you are getting.

The average tax return you are expected to receive in Australia is $3,140 per person. 27% of Australian do their own tax meaning the remaining outsource to the professionals such as accountants or registered tax agents.

The good news is us Australian’s tend to be a responsible bunch. The majority of people put their tax return towards the sensible stuff like loans, bills and savings. The below table outlines this for you:

31% saved it

18% loans or credit card payments

11% home loans

24% paid bills

So as you can see approximately 66% of all tax returns are going to paying down bills, homes and the dreaded credit cards.

Where does the rest of it go?

Holidays, appliances like TV’s, engagement rings, shopping, parties and cars make up 16% of the total tax returns.

So with tax time right around the corner where do you sit? Will you be paying down bills and patting yourself on the back or will you be splurging on the fun stuff?

The post is from our resident Financial Planner Cara Brett, check out her details in the About Us section.

Posted in: Cara Brett, and Financial Planning