Queenslanders saving this year’s tax refund

RACQ spokesperson Lucinda Ross said 42 percent of those surveyed would save their tax return, while 18 percent planned to use it to pay off debt.

“While it can be tempting to splurge when you get a tax refund, it’s a great opportunity to use the extra cash to build up your savings or get your bills under control,” Ms Ross said.

“Extra savings can create a buffer against any unforeseen costs in the coming financial year.”

Ms Ross said concerningly the survey revealed more than 10 percent of workers relied on their tax returns to pay everyday expenses.

“If you find you’re relying on your tax refund to get by, it might be time to look at your budget and see where you can save. You could consider an online budget planner, like RACQ’s, to help keep track of your finances,” she said.

Ms Ross said with 57 percent of Queenslanders surveyed saying they would prepare their own tax return, it was crucial to ensure taxpayers were claiming for the correct deductions.

“Do your research and check what you can and can’t claim for, because the last thing you want is to have to pay back money because the Australian Taxation Office (ATO) has found you’ve claimed for something you weren’t entitled to,” she said.

“As a general rule, the ATO provide a work-related expense is something you’ve spent money on yourself and have not been reimbursed for. It must be directly related to earning income and make sure you keep receipts for your deductions.”

The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.