Your tax refund has arrived!
Before you race out and spend those dollars on that new pair of shoes or the latest hi-tech phone follow FIDO's top tax tips.
Tip 1: Pay off your credit card
Pay off some or all of your credit card. The quicker you pay off your credit card the less it will cost you in the long run
Have a look at FIDO's Credit card calculator and see how if you only pay the minimum balance on a credit card with a $1,000 debt it could take more than 11 years to pay it off.
Tip 2: Boost your super
Did you know that according to ASFA / Westpac it costs singles around $38,000 a year to have a comfortable retirement and around $51,000 for couples? By boosting your super savings now you can work towards achieving the retirement lifestyle you want.
Money invested in your super today has longer to earn interest compared to money invested just before you retire. Check out FIDO's super calculator and see how $300 which is put into your super fund each year for 30 years can grow into $18,000 by the time you reach 60.
The other benefit to contributing to your super fund is that if you make after-tax contributions you could receive a government co-contribution. If your total income is $30,342 or less, the maximum co-contribution is $1,000, based on $1 from the government for every $1 you contribute. Find out More about making extra contributions to your super
Tip 3: Save your money and watch it grow
If you are dreaming of a holiday or a car why don't you open a high interest savings account and watch your money grow. Check out FIDO's saving investment calculator.
If you are saving for your first home, you could deposit your tax refund into a first home owner's savings account. The government will contribute an extra 17% of what you deposit into the account with a maximum $850 contribution if you deposit $5,000. Check out FIDO's information on first home savers account to see if it's right for you.
Tip 4: Pay some extra off your mortgage
If you have a home loan consider using your tax refund to pay off some of your mortgage.
Dollars paid into your mortgage will cut your interest bill, and can take years off your loan, especially if you start early. Check FIDO's information on home loans and check if your loan will allow you to make extra payments, and if there are any fees for doing so.
Tip 5: Set aside your money for Christmas
Christmas is coming as well as birthdays, anniversaries and other celebrations. Presents can be expensive so put away some money now and your friends won't have to be disappointed with your home-made gifts.
You could even buy or layby your presents now because stores may be offering sales and discounts that aren't available in the lead up to Christmas. Not only will you get your presents for a cheaper price you can also avoid a large end of year credit card bill.
FIDO Website: Printed 03/18/2010
