Earn
Where did Aussies spend their tax refund?
While the national government hoped its $1,080 tax refund would help stimulate the economy, new research has shown most Aussies pocketed the money.
Where did Aussies spend their tax refund?
While the national government hoped its $1,080 tax refund would help stimulate the economy, new research has shown most Aussies pocketed the money.
According to research conducted by financial information platform Money, 95 per cent of Australians did not spend their tax refund at the shops.
Licensed financial adviser and money.com.au spokesperson Helen Baker said “the lack of wage growth over the last few years and the rising costs of living have led to Aussies feeling the financial pressure”.
“In previous years, people would spend their tax refund on retail and leisure, but the findings reveal that the majority of us are struggling and are anticipating that the hard times will continue,” Ms Baker said.
Further, 70 per cent of respondents received tax refunds by mid-November last year, with a third putting the refunds into their savings account.
A further 28 per cent used the refunds to pay their bills, while 8 per cent spent their refunds on essential purchases, such as groceries and household repairs.
The survey results also revealed Australians do not plan to spend their tax savings at a future date.
Nearly half (42 per cent) said they will keep it in their savings. Twenty-six per cent of those who put their tax refund into their savings said they’ll eventually spend it on bills or essential purchases, while 19 per cent said they will put it towards leisure activities such as a holiday. Thirteen per cent said they will eventually spend it on retail purchases.
“The finding that under-30s and those in their 50s saving more than any other age group is reflective of these life stages,” Ms Baker said.
“Younger Aussies likely have the goal of saving a deposit for a home, and must demonstrate to the banks that they can save. Those in their 50s are also changing their mindset and thinking about their retirement, and have only so many pay packets left.”
RELATED ARTICLES
About the author
About the author
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
