According to the ATO*, Australians received an average tax refund of $2112, with 82% of taxpayers lodging their return on time in order to get it quickly.
But what was the hurry? What do Australians spend their tax refund on? It ends up we’re quite a responsible bunch.
29% of us paid bills. This makes sense because Australians spend on average $2,150 a month, just below what they received as their tax refund. With average wages sitting at around $4,035, it’s easy to see why so many of us have a few extra bills to pay off. 21% decided to be proactive and save the entire amount…although there are no measures to determine how long that money remained in savings for.
Sticking with the bill paying theme, 13% of us took a chunk off a loan or credit card, which is smart when the average credit card debt in Australia is now $4,268. Paying a bit extra off the home loan proved popular too, with 9% (presumably all from Sydney) choosing to get ahead of their mortgage.
Then, things got interesting. With an extra couple of grand in the bank, 5% decided to go on holiday, most likely to New Zealand or Indonesia. The rather generically termed ‘other things,’ made up a further 5%, with car registration, engagement rings, parties and clothing all being mentioned.
Only 2% of Australians have their priorities in order, spending their refund on home appliances such as stereos, televisions and beer fridges. Many of these were no doubt seduced by the, now traditional, end of financial year sales.
Spare a thought for the 16% of Australians that didn’t get a refund at all. Although how many of those were impacted by poorly completed returns is unknown, with 26% of us now taking personal responsibility and completing our own returns, it’s unlikely that this didn’t play a part.
That’s where POP comes in. Our intuitive system lets Australians get the most out of their tax return by guiding you through the process and even giving you average figures for people in your profession and industry. No more guessing.
*statistics taken from Moneysmart Survey 2016