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Smart Ways To Spend Your Tax Return

There’s nothing fun about tax time. Until the refund hits your bank account, that is. But temper that excitement for just a moment. You might want to read this before you blow your wad.

We don’t want to rain on your parade, but are those limited edition sneakers in your cart really the smartest way to spend your tax return?

Seeing that little windfall always feels good. Especially after the monotony of filling out a tax declaration. But if you’re left with a handsome tax refund around this time of year, it might be worth considering these five clever ways to put it to use.

Pay down debt

This is a no-brainer. Ever notice how high-interest debt incurred through credit cards or buy-now-pay-later services just doesn’t seem to move? That’s because of the high interest applied. You’re paying a pretty high price for the privilege of owing someone money.

If you’ve got debt like this on your books, whacking down a big chunk of your return on it could be a really good decision.

That said, even lower-interest debt like your mortgage or personal loan could benefit greatly from a solid windfall. Consider putting chunk of your tax return towards your debt – future you will thank you!


Do you have a Wisr loan? Why not use your tax return to get ahead? We don't charge any early repayment fees, so there's no harm in getting on top of your debt sooner.

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Invest in your home

A little bit really goes a long way when it comes to DIY home improvement. You don’t have to spend a fortune to bring some fresh, modern touches to your living space.

A fresh lick of paint, some nice new kitchen and bathroom fixtures or even a new front door will make you feel like the place is brand new if only for a few weeks. Depending on where you live, it could even nudge the price up if you’re looking to sell.

Check out these easy DIY activities you could knock over this weekend.

Invest in the market

If you’ve been thinking about putting some money into shares, this could be your chance. With so many easy-to-understand investment apps on the market now, it’s never been easier to get started. So if your tax return is just going to sit in the bank, you might find that you could get a better return in the market. 


But remember to do your research before you invest. Personalised financial advice is prohibitively expensive in Australia, but you can learn a lot by reading forums, Reddit threads and listening to podcasts aim for creators with a financial license.

Public forums like HotCopper offer the opportunity to hear what other investors have to say and learn more about the companies you’re considering buying into. As always, the more information you can find out, the better.

Start that rainy day fund

If you’re living paycheck to paycheck, it might be smart to use your tax return to kickstart a rainy day fund. Nobody is immune to bad luck, and who knows when a blown head gasket, medical emergency or sudden change in employment could come along and ruin your day/week/month. 

This one is never a bad idea.

Blow it

Yep. You heard us: blow it.

If you’ve got your debt under control and your savings account is looking healthy, there’s nothing wrong with treating yourself to a little something special – within reason of course. Denying yourself a few simple pleasures every now and then is not a sustainable way to hold on to your money, so if you think you’ve earned it, go ahead and get those sneakers.

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Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Services does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.

James is a marketing and communications professional with a passion for leading high-performance teams. He likes what he does… a lot.

James, Chief Growth Officer

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