Report reveals how you spent your tax refund this year

‘Tax refunds are simply helping us to get by now,’ says Money.com.au spokesperson.

Report reveals how you spent your tax refund this year

Every year the retail sector waits with bated breath for your tax returns. But the last round of refunds weren’t splashed out on flat screen TVs and snazzy new shoes, they were put to much more sensible use, says new research.

With retail turnover increasing just 0.2 per cent in September and 0 per cent in October, it’s clear that the first round of tax refunds Australians received by late last year – around $1080 – failed to produce the predicted boost to the retail sector, according to the Australian Bureau of Statistics (ABS).

New research from Money.com.au confirms that 95 per cent of the 1066 adults surveyed who’d received their tax refund, didn’t spend it at the shops (in store or online).

Seven in 10 survey respondents had received their tax refunds by mid-November last year. When asked where they had spent or put most of their tax refunds, a third (33 per cent) said ‘into their savings accounts’, 28 per cent said ‘to pay their bills’, eight per cent spent their refunds on essential purchases, such as groceries and household repairs, seven per cent said ‘paying down their mortgage’, and six per cent paid off credit card debt, leaving just five per cent spending their tax return on in store or online purchases.

Of those who put their tax refund into their savings, over four in 10 (42 per cent) said they would keep it in their savings. More than half (54 per cent) of those over 50 will keep their money in their account and 26 per cent say they’ll eventually spend it on bills or essential purchases, 19 per cent said they will put it towards leisure activities and 13 per cent say they may eventually spend it on retail purchases.

“The lack of wage growth over the last few years and the rising costs of living have led to Aussies feeling the financial pressure,” said Money.com.au spokesperson Helen Baker.

“In previous years, people would spend their tax return on retail and leisure, but the findings reveal that the majority of us are struggling and are anticipating that the hard times will continue. As such, the tax refunds are simply helping us to get by now – helping us to catch up where we were behind or helping us in the future. 

“Those in their 50s are also changing their mindset and thinking about their retirement and have only so many pay packets left. 

“When we’re struggling to meet expenses, it’s easy to get caught in a cycle of debt. To reduce your interest payments in the short term, you could consider whether consolidating your debts into one loan or transferring your credit card debt onto a zero per cent balance transfer card is appropriate for you.”

What did you do with your tax return this year?

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    COMMENTS

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    Tanker
    25th Feb 2020
    11:00am
    This latest research tends to confirm what common sense indicates. At a time when people's confidence in their future with regards to their personal finances they pull their head in on spending.
    An issue that effects thinking on this fundamental matter is that economists seem to be trying to explain what is happening to fit their financial theories. Perhaps if they themselves were in a tight financial situation they would have a better understanding of who the ordinary person thinks and acts. The same goes for politicians who like to think they are close to the ordinary person but with their cloistered existence they are light years away.
    Tanker
    25th Feb 2020
    11:00am
    This latest research tends to confirm what common sense indicates. At a time when people's confidence in their future with regards to their personal finances they pull their head in on spending.
    An issue that effects thinking on this fundamental matter is that economists seem to be trying to explain what is happening to fit their financial theories. Perhaps if they themselves were in a tight financial situation they would have a better understanding of who the ordinary person thinks and acts. The same goes for politicians who like to think they are close to the ordinary person but with their cloistered existence they are light years away.
    Anonymous
    25th Feb 2020
    11:40am
    Tanker our politicians are some of the highest-paid in the world by our small population of taxpayers. Of course, they aren't going to relate to the ordinary person, especially the honest, hard-working taxpayer.

    The recent bushfire disasters are a great example.

    When we have a political system that does not work, then we can't have a good financial system too.

    Politicians should be treated like the public servants they are meant to be. The entire political system needs an overhaul because it is no longer working like it did. Too much corruption and legal immoral loopholes have destroyed it.
    KSS
    25th Feb 2020
    12:35pm
    jackie jackie jackie! If our politicians were treated like public servants, they would be paid a great deal more thn they already are! And if they switched to the private sector, they would also earn far more.

    Despite your bias, there would be no difference if the opposition had won the last election.
    Mariner
    25th Feb 2020
    1:17pm
    I do not begrudge them their salaries; there are just too many of them for our small population - local Govt, State/Territory and Commonwealth Govts. Top that with a Senate for everything but Qld. The House of Review could be abolished but the buggers won't leave the trough willingly.
    Triss
    25th Feb 2020
    2:23pm
    If you culled a few of them there would be no benefit to the taxpayers because the ones that were left would increase their own income as they “had so much extra work”.
    Karen
    25th Feb 2020
    8:58pm
    Please - let them moved to the the private sector and enrich themselves.
    Karen
    25th Feb 2020
    8:56pm
    Buyer fear? Fear of a market collapse and other nasties that have been slavering at the door for ages now for Australia.
    JoJozep
    22nd Mar 2020
    11:52am
    Why do we bother?

    We are like lap dogs looking up for someone to throw scraps off the table!

    Wake up please! Note the Announcements in the press: "Government releases $189 Billion"
    My first reaction was Wow! They’re doing something about the crashing economy. How wrong I was to find this a beat up by ScoMo & Co. and although not totally false, totally misleading advertising by the "press" (you all know who I mean).

    The new daily reports: (In my summary form):

    1. $189 Billion stimulus package to go towards economy rescue. Package contains measures to prop up businesses worth under $50 million with loans up to $100,000 tax free for tax withheld from Employees salary and wages up to 100% of tax withheld. (Tax withheld?) Please explain!

    2. Not for profit charities $25.2 Billion. (What grants? loans? electorate dependent?) (Please explain)!

    3. The first $17.6 Billion and $105 Billion of Reserve bank action to go to big business lenders and banks in the form of guarantees? (Shit, please explain)!

    4. Under SME conditions, Eligible banks and lenders will get guarantees of loans of up to $250,000 of up to 50% of loan to new customers, but not existing customers. NC

    Then YLC reports above: "Aside from the $4.8 billion in handouts, another $8 billion will go towards wage subsidies and a major expansion of the instant asset write-off program and around $11 billion will go to businesses and households." - Quote from above.

    Trying to unravel this is so complex my head hurts. Like winning a lottery, you're told how much you get if you're a winner. Not what each retiree gets, much less pensioners.

    Your $750 handout x by say 6,000,000 recipients is around $4.5 Billion. So out of a total package announced of $239 Billion to help us all, $4.5 Billion goes to pensioners and people on welfare. That's a little less than 1.9% of the total handouts. So for all the government bullshit announcements from ScoMo and Co, bugger all is going to pensioners and welfare recipients of taxpayer money.

    Gee, the ScoMo election team is working over time, appearing to help people in need, appearing benevolent when in fact, all they want is your vote. Also note, there's $122.6 Billion made available by the Reserve Bank, but mainly to help big and small business, which is paper money and QE. The poor people in this country will be lucky to get a sniff of this.

    So Bullshit on ScoMo & Co, time is drawing near to the next election.


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