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Where did Aussies spend their tax refund?

  • February 10 2020
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Where did Aussies spend their tax refund?

By Cameron Micallef
February 10 2020

While the national government hoped its $1,080 tax refund would help stimulate the economy, new research has shown most Aussies pocketed the money.

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Where did Aussies spend their tax refund?

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  • February 10 2020
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While the national government hoped its $1,080 tax refund would help stimulate the economy, new research has shown most Aussies pocketed the money.

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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. 

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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.”

Where did Aussies spend their tax refund?
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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