The cents-ible way to spend your tax return!

Women with CentsBlog, Budgeting

It’s tax time!

This time of year many of us are eagerly anticipating our tax refund and already planning how to spend it.

For some, ‘tax refund’ translates to ‘shopping spree’ or ‘plane ticket’ but before you go burning through your hard earned money, remember the advice given by the wise old ladies in movies, as they oh-so-generously press a $5 note into a child’s hand :
“Don’t spend it all at once.”

Ok, so you can if you want, but before you do, I suggest having a read through some of the more sensible ways to use your tax return.

Of course, your spending ability will depend on the size of your return, but feel free to pick and choose from the list based on what you can afford.

Suggestion #1 : Pay off your personal loan or credit card

Wouldn’t it be nice to rid yourself of any debts and start the new financial year with a fresh slate? If you decide to put your tax return towards this, be sure to cut that card up afterwards or better yet, reduce the limit to prevent you spending your refund!

Suggestion #2 : Save it for when your childcare rebate runs out

If you have kids in childcare, you’ll be aware that the government covers 50% of out-of-pocket child care expenses for approved child care. There is of course an annual limit per child so it’s a wise move to set your tax return aside for when the rebate runs out.

Suggestion #3 : Start an emergency savings fund

You never know what’s around the corner – redundancy, illness, an unexpected move, or on a more positive note, perhaps you’ve decided to pursue your dreams and freelance! An emergency savings fund can be a lifesaver and ideally you should have about three months of living expenses saved up in case the unexpected happens.

Suggestion #4 : Take Out Income Protection Insurance

Kill two birds with one stone – get a tax deduction and also protect your biggest asset! Make sure you shop around for your insurance and seek the advice of a financial adviser to find the right fit for you. Check out this blog to find out why!

Suggestion #5 : Put it into your mortgage

As you know, we’re all about getting rid of debt and you can find out just how quickly you could be debt free by doing so, with the help of our Extra Repayment Calculator.

Suggestion #6 : Invest It

Investment. It can be a scary word but it’s something worth thinking about, especially when you find yourself with a little extra money! Don’t know what to consider when investing? Check out this recent blog.

Or better yet, why not invest it in yourself? As a wise man once said “an investment in knowledge pays the best interest”.

So if you would like a hand with learning more about money including how to make wiser financial decisions, getting started with investing and managing your super, as well becoming a better saver and getting on the same page with your partner, then be sure to check out our Making Cents of Money program. Our live round kicks off soon!


If you’ve reached the end of this list and you’ve decided to forego a trip to Thailand or a new pair of shoes, then my work here is done!

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The information provided by Women with Cents is general in nature. It doesn’t take into account your objectives, personal financial situation or needs. Think of it as educational material in which to help you make more-informed decisions. We recommend you obtain financial, tax and credit advice specific to your situation before making any investments or financial decisions.

Sova Financial Pty Ltd Trading as Women with Cents. ABN 71 163 435 836 | Sova Financial is an authorised Credit Representative Number 443432 of Finsure Finance & Insurance Pty Ltd, ACL 384704, ABN 72 068 153 926| Sova Financial is a corporate authorised representative no 468977 of Shartru Wealth Management, AFSL 422409, ABN 46 158 536 871