According to recent data*, for 2018-19 financial year individual tax returns, the average tax refund was $2,959.21. Coupled with this, according to a recent survey^, the top-three ways Australians plan to use a tax refund this year are: put in savings (35%), pay bills (12%), and pay off mortgage (7%).
With the above in mind, this Bloomberg video covers combatting distractions. One example of combatting distractions is via forethought, which may be beneficial in the context of a tax refund and its appropriate use.
“When it comes to distraction,
the antidote to impulsiveness is forethought”
(Nir Eyal).
In terms of putting a tax refund (expected or received) to good use this year, here are a few suggestions for consideration: invest in yourself, reduce debt, spend on essentials, make a super contribution, establish an emergency buffer, put towards savings or investments, and spend a portion on ‘want’ items.
*Australian Government, Australian Taxation Office. Taxation Statistics 2018-19 Individuals - Table 1.
^Finder. (2021). Finder Tax Returns survey of 1,000 Australians. May 2021.