Blog 5 ways to spend your tax refund this year

5 ways to spend your tax refund this year

19 July 2020

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Don’t waste all of your tax returns on something silly - we’re here to suggest some ways to spend it wisely.

Submitting your tax return may feel like a chore, but for most of us, it comes with the sweet reward of an instant injection of cash into our bank accounts.

Here are five smart ways to spend your tax refund this year if you’re a homeowner, are looking to purchase a home, or are in the market for a new car.

Put it towards your home loan repayments

The COVID-19 pandemic has shown just how quickly your situation can change and if you’re a homeowner, having less debt right now could make a huge impact. By paying off your home loan faster, you could potentially save thousands of dollars in interest.

Put your tax refund to work by depositing it straight into your home loan. It will come straight off the principal amount and, depending on the size of your tax refund, will shave the amount you owe.

Buy a new green car

Kermit may not think it’s easy being green but our green car loan says otherwise - it’s as cheap as some home loans! So if you’re in the market for a new car, it may be worth considering putting your tax return towards the purchase of a green car and take advantage of our low rates.

To find out if your car is on our approved list of green cars, you can call us on 13 10 90 and speak with one of our friendly car lending experts.

Put it towards your house deposit

If you’re thinking about buying a home, your tax refund could be the extra boost your deposit needs. Even a modest tax refund can make a big difference to your house deposit - every little bit helps when it comes to saving up for a house.

While you’re at it, find out if you qualify for a home loan with loans.com.au. We've recently launched a new home loan product with rates below 2%. More information on our new Smart Booster Home Loan here.

Upgrade your home

Renovating can add some serious value to your property, as well as making your home look and feel nicer to live in. If your home is in need of a little lovin', your tax refund could help offset some of the reno costs.

Don’t forget about the $25k HomeBuilder scheme that you can also put towards the cost of your home renovations. To be eligible, you must be spending between $150,000 and $750,000 on your renovation (if your home is worth less than $1.5m).

Here are some more ideas about how to spend the $25k HomeBuilder grant on your renovations wisely.

Pop it in your mortgage offset

Depositing your tax return straight into your mortgage offset account can be a very wise move as it will save you interest on your mortgage.

Plus, you can still access that cash later on if you need it. Win-win!

To apply for our redraw offset facility, book an appointment with one of our friendly lending specialists today.

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