Top ways to use your tax return this year
Monika Gudova | 09 Aug 2018
Putting this year's tax return in your savings account seems like a no-brainer right? Well, with the average savings account offering up a return of just 1.79% p.a., Mozo research has shown there are some much better options for money savvy Aussies.
“We found depositing the average tax refund of $2,602 in a savings account with this 1.79% rate delivers a return of just $48 in interest a year- not much better than if you were to put it under your mattress,” said Mozo Data Manager, Peter Marshall.
So what should you do with your tax return windfall? We’ve broken down a couple of the best ways to use your tax return so you can watch your hard-earned money grow this year.
Make an extra repayment on your home loan
One way Aussies can save is by putting their tax refund towards their mortgage. By funnelling your tax refund into your mortgage you could save $230 in interest over the next year*. Over a 30 year loan, this would wind up saving you $6,895 in interest.
“Nearly one million Australian mortgage holders are now experiencing mortgage stress across the country,” said Marshall^.
“Using your tax refund as an extra repayment is a great strategy to build up a bit of a buffer within your mortgage when interest rates inevitably rise.”
Pay off credit card debt
With ASIC findings suggesting that as many as one in five Aussie cardholders are struggling with credit card debt, paying off a lingering balance with your tax return could be a way to get out of deep water.
Using your tax refund to pay the average credit card debt of $4,400 off a card collecting interest at 17.06%* could save you up to $344 over the year, helping you clear your card debt up to seven months earlier.
“For debt-holders receiving a tax refund this year, this could be the kick start they need to finally get their finances from the red into the black,” said Marshall.
If you’re tired of high interest rates and accumulating debt, check out some great deals to help you save below. Or, if you’d like to compare more options, head over to our credit card comparison tool.
*Calculations based on the average tax refund from the Australian Taxation Office Annual Report 2016/17. Annual credit card savings calculated are based on the average purchase rate of 17.06% and average credit card debt. Annual home loan repayment savings are based on an average $300,000, owner-occupier home loan. ^From Digital Finance Analytics: http://digitalfinanceanalytics...
Balance transfer credit card offers - rates updated daily
- Woolworths
Woolworths Everyday Platinum Credit Card
0% p.a. for 14 months and then 21.99% p.a.
19.99% p.a.
$49 $0 in the first year
10% off your 1st Woolworths shop on selected dates once a month. No annual fee for the first year.
-
0% p.a. for 14 months and then 21.99% p.a.
-
$49 $0 in the first year
-
19.99% p.a.
-
55
-
21.99% p.a.
-
3%, minimum $5
-
Woolworths Money Shopping Card sent every 4 months if enough points have been accrued.
Details Close
-
- American Express
American Express Velocity Escape Card
0% p.a. for 12 months and then 20.74% p.a. (1.00% balance transfer fee)
20.74% p.a.
$0
No Annual Fees and receive 0% p.a. on balance transfers for the first 12 months
-
0% p.a. for 12 months and then 20.74% p.a. (1.00% balance transfer fee)
-
$0
-
20.74% p.a.
-
55
-
-
-
Points automatically transferred to your Velocity account
Details Close
-
- Suncorp
Suncorp Clear Options Platinum
0% p.a. for 18 months and then 21.99% p.a.
20.74% p.a.
$178
0% p.a. for 18 months on balance transfers & up to 60,000 Bonus Reward Points when you spend $1,500 each month using a Suncorp Clear Options Platinum Credit Card for six months from card approval (T&Cs apply)
-
0% p.a. for 18 months and then 21.99% p.a.
-
$178
-
20.74% p.a.
-
55
-
21.99% p.a.
-
3.50%, min $3.50
-
Points are automatically credited to the Qantas Frequent Flyer program.
Details Close
-
- Bankwest
Bankwest Breeze Platinum Mastercard
0% p.a. for 13 months and then 12.99% p.a. (2.00% balance transfer fee)
0% p.a. for 13 months then 12.99% p.a.
$99
Complimentary international travel insurance for yourself and your family when you purchase return tickets
-
0% p.a. for 13 months and then 12.99% p.a. (2.00% balance transfer fee)
-
$99
-
0% p.a. for 13 months then 12.99% p.a.
-
55
-
21.99% p.a.
-
2%, Min $4.00
-
Details Close
-
- 28 Degrees
28 Degrees Platinum Mastercard
4.99% p.a. for 6 months and then 21.99% p.a.
21.99% p.a.
$0
$0 overseas fees on purchases + Enjoy fast, premium quality Global Wi-Fi at more than 1 million hotspots worldwide
-
4.99% p.a. for 6 months and then 21.99% p.a.
-
$0
-
21.99% p.a.
-
55
-
21.99% p.a.
-
3%, min $4
-
Details Close
-
-
Apply By 31 October 2018
Virgin MoneyVirgin Money Virgin Australia Velocity Flyer Card - Balance Transfer and Points Offer
0% p.a. for 18 months and then 20.99% p.a.
20.74% p.a.
$129 $64 in the first year
Earn 3 bonus Velocity Points on top of standard earn rates in first 3 months
-
0% p.a. for 18 months and then 20.99% p.a.
-
$129 $64 in the first year
-
20.74% p.a.
-
44
-
20.99% p.a.
-
2.7%, Min $2.70
-
Points are credited to the Velocity Frequent Flyer program.
Details Close
-
-
Hot Deal 0% for 24 months
CitiCiti Platinum (Balance Transfer Offer)
0% p.a. for 24 months and then 21.74% p.a. (1.50% balance transfer fee)
20.99% p.a.
$149 $49 in the first year
0%p.a. for 24 months on balance transfers (one off 1.5% BT fee applies, reverts to cash advance rate). Also receive complimentary International Travel Insurance.
-
0% p.a. for 24 months and then 21.74% p.a. (1.50% balance transfer fee)
-
$149 $49 in the first year
-
20.99% p.a.
-
55
-
21.74% p.a.
-
3.5%, min $3.50
-
Transfer points to a range of airline programs or redeem your points for travel, cashback, gift cards, retail rewards and shopping gift cards.
Details Close
-
- American Express
American Express Explorer® Credit Card
0% p.a. for 12 months and then 20.74% p.a. (1.00% balance transfer fee)
20.74% p.a.
$395
Receive 50,000 Membership Rewards® Points (T&Cs apply). Also receive $400 Travel Credit each year.
-
0% p.a. for 12 months and then 20.74% p.a. (1.00% balance transfer fee)
-
$395
-
20.74% p.a.
-
55
-
-
-
Transfer points to a range of airline programs or redeem your points for travel, gift cards, retail rewards and shopping gift cards.
Details Close
-
- ANZ
ANZ Low Rate
0% p.a. for 15 months and then 21.74% p.a.
12.49% p.a.
$58
0% p.a. first 15 months on balance transfers (T&Cs apply)
-
0% p.a. for 15 months and then 21.74% p.a.
-
$58
-
12.49% p.a.
-
55
-
21.74% p.a.
-
2%
-
Details Close
-
-
Apply By 31 October 2018
Virgin MoneyVirgin Money Virgin Australia Velocity Flyer Card - Purchase Rate and Balance Transfer Offer
0% p.a. for 6 months and then 20.99% p.a.
0% p.a. for 14 months then 20.74% p.a.
$129
Receive a $129 Virgin Australia gift voucher each year. 0% p.a. on purchases for up to 14 months.
-
0% p.a. for 6 months and then 20.99% p.a.
-
$129
-
0% p.a. for 14 months then 20.74% p.a.
-
44
-
20.99% p.a.
-
2.7%, Min $2.70
-
Points are credited to the Velocity Frequent Flyer program.
Details Close
-
Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.
