More than half of Australians are planning on using their tax refund to pay off debts, according to a survey by non-bank lender Homeloans.
Figures released today show that 52 per cent of Australians expecting to receive a tax refund won’t use it on a holiday or shopping spree.
With economic concerns and the rising cost of living cited as the main motivators, 21 per cent of budget conscious Australians plan to save their refund for a rainy day.
And of those 25 per cent who plan to spend their refund, only 10 per cent will buy something for themselves; paying off bills is the number one priority.
Homeloans’ national marketing manager Will Keall says it is a welcome change to past years.
“With the end of the financial year fast approaching, most Australians traditionally look forward to their annual tax refund as a welcome bonus to spend on either themselves or their families,
“A tax refund is often seen as free money, which makes it very tempting to spend right away. However, it’s important to remember that the refund you’re getting back is your own money.”
The survey unsurprisingly reveals that 80 per cent are today more cautious with money than they have been in previous years.
“Despite the relative strength of the Australian economy, international economic uncertainty coupled with the rising cost of living is having a major impact on our spending habits.
“Many of our survey respondents also had very real concerns about their job security, with redundancies already making an impact in certain employment sectors,” says Mr Keall.
“Reducing personal and household debt is therefore a major priority. For many consumers and homeowners, it’s time to batten down the hatches.”