What to do with your extra rate & tax cut dollars

RACQ Bank has reminded Queenslanders they could get ahead with some extra cash in their pockets following the second consecutive cut by the Reserve Bank of Australia, and with Federal Governments tax cuts passed overnight.

With the official cash rate the lowest it had ever been and income tax savings on the way, RACQ Bank spokesperson Lucinda Ross said now was a great time for homeowners to look at how they might invest the extra money they could save.

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“When we look at the average $340,000 mortgage, taking into account the interest rate and tax cuts, a person could save themselves about $1700 extra per year,” Ms Ross said.

“Whether you take the extra cash you’re saving and put it into paying down your mortgage or credit card quicker, or you pop some extra money into superannuation for when you need it down the track, it’d be smart to make these cuts work for you.”

Ms Ross said there was also an opportunity to save some dollars at a better rate.

“Interest rates are low for depositors too and there are some good deals out there so we’re urging Queenslanders to think about putting some cash away for things that matter. Maybe it’s the kids school fees, or that holiday savings account – it you put money away now you’ll reap the rewards in the future.”