16 October 2015
Mortgage Choice reveals the best ways to maximise your tax return
As the deadline for filing tax returns fast approaches, new data would suggest many Australians are yet to complete the task.
According to data from the Australian Tax Office, approximately 20% of Australians fail to lodge their tax return before the October 31 deadline.
Local Mortgage Choice in Robina franchise owner/mortgage broker Renee Polden said while filing a tax return can seem like a daunting and time consuming chore, it is important for Australians to meet their tax deadline lest they face a hefty fine.
“Those who don’t complete their tax return on time can incur a penalty of $850 plus interest,” Renee said.
“Meanwhile, those who do complete their tax return on time not only avoid being fined, but are often rewarded with a nice tax refund.”
For those who do receive a tax refund, Renee said it is important to invest the money wisely.
“Your tax refund could be a good opportunity to plan for the future – whether that involves growing your savings or paying off your debts,” she said.
To help Australians use their tax refund wisely this year, Mortgage Choice provides the following top tips:
Add to your home loan deposit: With banks aggressively competing for owner occupied business, there’s never been a better time to apply for a home loan. So why not add your tax return to your home loan deposit and get yourself on the property ladder sooner rather than later?
Target high interest debt: According to Mortgage Choice’s 2015 Money Survey, more than 50% of Australians have some form of credit card debt. Of those with credit card debt, more than 33% boast more than $5,000 worth of debt. Worse still, a lot of people with credit card debt tend to only make the minimum repayments each month. And, given that interest rates on credit cards are notoriously high, many get stuck with ongoing debt on their credit card because they can’t break the cycle. Using your tax return to pay off debt is the perfect solution.
Start or increase your emergency fund: Life is full of surprises, some more expensive than others. As such, it is always a good idea to have an emergency fund. You can use any money you receive from your tax return to either start or build an emergency fund. Placing the money in a locked, high interest savings account will not only provide you with accumulated interest, but peace of mind.
Top up your mortgage: For those with a mortgage, your tax return can provide you with the perfect opportunity to make an additional payment. When it comes to your mortgage, every extra cent counts. If you put your tax refund into your mortgage each year, you may be able to save yourself thousands of dollars in interest and slash years off your loan.
Inject it into super: If you don’t have a mortgage, another great way to spend your tax refund is by injecting it into your super. This will help you to grow your nest egg, which will help you tremendously in retirement. You can make a contribution at any time of the year by depositing funds straight into your super.
If you would like learn more about your home loan or financial advice options, call 07 5562 0748 or visit www.mortgagechoice.com.au/robina1
For further information, photos of the new logo, or to arrange an interview, please contact:
Mortgage Choice in Robina
07 5562 0748
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.
Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.
Since that time, the company has grown and developed into a fully fledged financial services provider.
Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.
Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Recent recognition: 2015, 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.