6 Clever ways to maximise your tax refund
Tax time is upon us, and for many Aussies, it's an opportunity to make the most of the money coming back to you. Whether you’re receiving a sizable chunk or just a modest return, there are clever and easy ways to maximise your tax refund and set yourself up for financial success.
Here are our top tips to help you make the most of your refund this year.
1. Pay off high-interest debt
One of the smartest moves you can make with your tax refund is to pay off high-interest debt. Credit cards and personal loans can carry hefty interest rates that add up quickly. By using your tax refund to reduce or eliminate this debt, you can save a significant amount in interest payments over time, giving your finances a solid boost.
2. Boost your emergency fund
An emergency fund is essential for financial security, yet many Aussies find themselves unprepared for unexpected expenses. Use your tax refund to bolster your emergency savings. Aim to have at least three to six months’ worth of living expenses set aside. This will provide a cushion against unforeseen financial challenges, giving you peace of mind.
3. Invest in a term deposit
If you're looking for a low-risk way to grow your savings, consider putting your tax refund into a term deposit. Term deposits offer a fixed interest rate for a set period, ensuring your money grows steadily without exposure to market volatility. It’s a great way to earn more on your savings while keeping them secure.
4. Contribute to your superannuation
Boosting your superannuation can be a smart move for your long-term financial health. By making additional contributions with your tax refund, you can take advantage of compound interest and potentially benefit from tax incentives. This can significantly enhance your retirement savings over time.
5. Open an offset account
For homeowners, using your tax refund to reduce your mortgage interest can be highly beneficial. An offset account linked to your mortgage can reduce the amount of interest you pay, as the balance in the offset account is deducted from your loan principal when calculating interest. This can help you pay off your mortgage faster and save on interest payments.
6. Start or boost a savings account
If you don’t already have a dedicated savings account, now is a great time to start one. Consider a high-interest savings account to make your money work harder for you. Even if you already have a savings account, using your tax refund to top it up can accelerate your savings goals, whether it’s for a holiday, a home deposit, or a rainy day fund.
Maximising your tax refund doesn’t have to be complicated. By making smart, informed decisions, you can use this financial boost to improve your financial health and achieve your long-term goals. Whether it’s paying off debt, saving for the future, or investing in your growth, there are plenty of ways to make your tax refund work for you.
Compare term deposits to stash your return - last updated 28 June 2024
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Mozo experts choice awards won:
- Term Deposit - 2024
Term Deposit
5.00% p.a.
1 year$1,000
Yes up to $250,000
Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)
CompareCompareTerm Deposit
Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)
- interest rate
- 5.00% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Rabobank Term Deposit
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Online Term Deposit
5.00% p.a.
1 year$5,000
Yes up to $250,000
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.
CompareCompareOnline Term Deposit
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.
- interest rate
- 5.00% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
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Term Deposit
5.25% p.a.
4 months$5,000
Yes up to $250,000
Invest as little as $5k to grow your savings with our attractive Term Deposits rates. No establishment or ongoing fees with interest paid at maturity. Mobile app available. T&Cs apply.
CompareCompareTerm Deposit
Invest as little as $5k to grow your savings with our attractive Term Deposits rates. No establishment or ongoing fees with interest paid at maturity. Mobile app available. T&Cs apply.
- interest rate
- 4.80% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- -
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Southern Cross Credit Union Term Deposit
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6 Months Term Deposit Special
5.00% p.a.
6 months$50,000
Yes up to $250,000
Boost your savings with a 6 month Illawarra Credit Union term deposit. Minimum deposit of $50,000. Deposits up to $250,000 per account holder are secured by the Government’s Financial Claims Scheme.
CompareCompare6 Months Term Deposit Special
Boost your savings with a 6 month Illawarra Credit Union term deposit. Minimum deposit of $50,000. Deposits up to $250,000 per account holder are secured by the Government’s Financial Claims Scheme.
- interest rate
- -
- Minimum deposit
- $50,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $50,000.00
- Maximum deposit
- -
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Illawarra Credit Union 6 Months Term Deposit Special
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11 Month Term Deposit - Special Offer
5.00% p.a.
11 months$500
Yes up to $250,000
Grow your savings with a South West Slopes Bank Term Deposit. Ability to deposit or withdraw funds at maturity. Interest is calculated daily and paid on maturity or at monthly intervals. $500 minimum deposit.
CompareCompare11 Month Term Deposit - Special Offer
Grow your savings with a South West Slopes Bank Term Deposit. Ability to deposit or withdraw funds at maturity. Interest is calculated daily and paid on maturity or at monthly intervals. $500 minimum deposit.
- interest rate
- -
- Minimum deposit
- $500.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $500.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- no
Read our Mozo Review to learn more about the South West Slopes Bank 11 Month Term Deposit - Special Offer
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* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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