Top ways to use your tax return this year
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: https://digitalfinanceanalytics...
Balance transfer credit card offers - rates updated daily
NAB Low Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)13.49% p.a.$59 $0 in the first year-Low Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
- Purchase rate
- 13.49% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 3%, Min $3
Read our Mozo Review to learn more about the Low Rate Card - Balance Transfer Offer
- Apply By 30 April 2024
Citi Premier
120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 6 months and then 22.24% p.a.21.49% p.a.$300 $150 in the subsequent years if you spend $48,000 on eligible purchases or cash advances in previous year., $150 in the first yearCiti Rewards ProgramPremier
120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.
- Purchase rate
- 21.49% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 6 months and then 22.24% p.a.
- Cash advance
- 22.24% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 150.0
- Foreign exchange margin
- 3.40%
- Annual card fee
- $300 $150 in the subsequent years if you spend $48,000 on eligible purchases or cash advances in previous year., $150 in the first year
- Late payment fee
- $30.00
- Cash advance fee
- 3.5%, min $3.50
Read our Mozo Review to learn more about the Premier
Bank of Queensland Blue Visa Credit Card
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 9 months and then 21.74% p.a.0% p.a. for 9 months then 20.74% p.a.$60Q RewardsBlue Visa Credit Card
- Purchase rate
- 0% p.a. for 9 months then 20.74% p.a.
- Intro purchase rate
- 0% p.a. for 9 months
- Balance transfer rate
- 0% p.a. for 9 months and then 21.74% p.a.
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 44
- Intro fee
- -
- Foreign exchange margin
- 3.40%
- Annual card fee
- $60
- Late payment fee
- $30.00
- Cash advance fee
- 3.5%, min $3.50
Read our Mozo Review to learn more about the Blue Visa Credit Card
- Apply By 14 May 2024
Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 24 months and then 20.99% p.a.20.74% p.a.$149 $0 in the first yearVelocity Frequent FlyerVirgin Australia Velocity Flyer Card - Balance Transfer Offer
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
- Purchase rate
- 20.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 24 months and then 20.99% p.a.
- Cash advance
- 20.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.30%
- Annual card fee
- $149 $0 in the first year
- Late payment fee
- $30.00
- Cash advance fee
- 2.7%, Min $2.70
Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Bankwest More Classic Mastercard
Earn 1.5 More Rewards points per $1 spent on eligible purchases. Plus, if you meet the minimum annual spend, you'll receive a bonus 19,500 points every year.
Balance transfer rate
Purchase rate
Annual fee
Rewards program
Estimated savings
0% p.a. for 6 months and then 19.99% p.a. (1.00% balance transfer fee)19.99% p.a.$100Bankwest More RewardsMore Classic Mastercard
Earn 1.5 More Rewards points per $1 spent on eligible purchases. Plus, if you meet the minimum annual spend, you'll receive a bonus 19,500 points every year.
- Purchase rate
- 19.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 6 months and then 19.99% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.99% p.a.
- Interest free days on purchases
- 44
- Intro fee
- -
- Foreign exchange margin
- 2.95%
- Annual card fee
- $100
- Late payment fee
- $25.00
- Cash advance fee
- 3%, Min $4
Read our Mozo Review to learn more about the More Classic Mastercard
^See information about the Mozo Experts Choice Credit Card Awards
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