Tax Time
What to do with the all-important financial boost

Now we’ve entered into a new financial year, a little boost to your wallet (tax return) provides a good opportunity to focus on your financial goals. In 2020, ME saw that the COVID-19 pandemic changed the way people used their return, choosing to save instead of spending.

Surveying 1000 Australians in 2020, ME’s research found more Australians were wary of spending their tax return. 58% of respondents expecting to receive a return, said they would use it to add to cash savings. When the same question was asked in 2019, only 49% of respondents said they would focus on saving.

ME also found that 21% of respondents indicated they would use their tax refund to pay down their home loan, (up from 17% in 2019) and 18% would invest in shares or superannuation, (up from 16% a year ago), but some were willing to splurge, with 22% of respondents looking to spend their return on items such as clothes, holidays or eating out.

So, what does ME think about this year’s opportunity for a financial boost? Use it wisely. Here’s how.

Futureproof yourself

A tax refund is a great opportunity to establish or bolster your emergency savings. Ideally, you’d have enough emergency savings to cover at least six months of expenses, but even having a small stash of cash can help you weather life’s unexpected events or outlays. Just leaving it in a transaction account, makes it too easy to dip in, even unintentionally, for nonessential expenses. Consider locking it away in a separate savings account or term-deposit.

A tax refund can also provide a good opportunity to maintain assets such as your home, car or health, possibly postponing bigger expenses later on.

Reduce debt stress

Paying down debt is a great strategy for debt stress reduction. It reduces an ongoing cost to free up your monthly budget. Start with higher rate debt first, such as credit cards, personal, student and car loans or leases, and consider hunting around for better rates. While a home loan has one of the lowest rates of any type of debt, it’s also a long-term affair and any sum you can tip in today, can knock years off the term and save you a bundle in interest along the way.

Add to your super
Using a tax refund to grow your retirement savings is a smart move. Given the power of compounding returns, the more you contribute now to super the more you’ll have for retirement.

Updates correct as at 21 July 2021.
Authorised by Emily Shepherd, ANMF Tasmanian Branch Secretary

ASSISTANCE & SUPPORT

Member Support Team: The ANMF Tasmanian Branch is 8000 plus members strong! Supporting nurses, midwives, and care workers as the only union in Tasmania employing nurses and care workers to represent members. This is why our Organisers and Member Support Team are uniquely positioned to understand your experiences, represent you in your workplace, and offer industrial advice that’s relevant to you. Please contact our Member Support Team if you need workplace support, would like to discuss any matters or raise a concern. Alternatively, you can send an email outlining your concerns to our team - membersupport@anmftas.org.au. Email is the preferred and fastest way of contacting the team, however if your matter is urgent, please phone (03) 6223 6777 or 1800 001 241 if you are outside of Hobart.

Member Support Team

Nurse and Midwife Support If you are seeking confidential support and advice, members have access to 24/7 phone support from Nurse and Midwife Support.

Nurse and Midwife Support

More latests news

District Hospital Working Group

[siteorigin_widget class="Tribe_Image_Widget"][/siteorigin_widget]Update: Site-by-site consultations 31 October 2018 The District Hospital Working Group is now conducting site-by-site consultations on the proposed workload model for Primary Health sites. This will help inform staff on the details of the model and to seek [...]

Walker House 25 Years Celebrations Child Health and Parenting Service North

Walker House 25 Years 31 October 2018 Last week, the ANMF joined members in the celebrations of 25 years at the Walker House Parenting Centre in the north. ANMF kindly donated the cake. [siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget][siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget][siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget]

Media Release: ANMF joins calls for evacuation of children from Nauru

[siteorigin_widget class="SiteOrigin_Widget_Image_Widget"][/siteorigin_widget] 31 October 2018 Media Release. 19 October, 2018. ANMF JOINS CALLS FOR EVACUATION OF CHILDREN FROM NAURU The country’s largest union, the Australian Nursing and Midwifery Federation (ANMF), has joined the College of Mental Health Nurses and [...]