Tax Refund Tips: Make It Work for Your Future

A tax refund is really delayed income, so treat it with the same care as your salary. Here as some ideas to consider.

• Pay down high-interest debt – Clearing a large credit card balance could save hundreds in annual interest.
• Build your emergency fund – Add it to a high-interest savings account until you reach 3–6 months of expenses.
• Boost your superannuation – A voluntary contribution now could grow significantly by retirement – but always talk to a Financial Adviser beforehand.
• Pay into your mortgage offset – Money in an offset account effectively reduces interest charged over the loan term. And in an offset account you can usually access it easily if needed.