If you’re wondering about the best ways to use your tax refund money, you’ve come to the right place. As one of the most trusted Sydney accountants – DSV Partners has advised a number of clients about how they should spend their tax refund for maximum benefits. The ultimate aim here is of course to make you more financially stable. So, before you head to buy your next unnecessary gadget and start making spur of the moment buying decisions, here are some of the most productive ideas to make your tax refund actually work for you.
- Eliminate or reduce high interest debts: The best thing you can do to reduce your financial burden is to pay off your high interest debts. Paying off your car loans, credit card debt or student loans is a great way to put your tax refund to work.
- Fund your retirement account: In these times, you need a lot of money to lead a comfortable life after retirement. Even for a modest lifestyle after retirement, you should have at least $300,000 in Australia. These numbers are enough to scare anyone but a great way to maximise the growth potential of your superannuation fund is to start contributing towards it from early on. Consult with a financial adviser before transferring your tax refund to superannuation fund. Trust us; you’ll thank yourself for this decision in the future.
- Make work related purchases: If you’ve been thinking of purchasing some work related equipment, such as electronic items, tools and computers, using this year’s tax refund for this purpose is a wise decision. If you purchase work equipment at the start of the year that cost you at least $300, you can claim maximum deduction for depreciating assets on your next tax return.
- Invest: If you are financially sound with no credit loans, you may think of making some wise investments by opening a brokerage account. If you’re a beginner, start with online brokers as they are efficient and affordable for small investors. Consult a financial adviser before you make investments.
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