If you're expecting a sizable tax return, it can be tempting to blow the money on a shiny new gadget or mid-year holiday. Indeed, a recent survey by Get Qualified Australia (GQA) found that nearly a fifth of Australians spend their tax return on recreation. By contrast, just 2 per cent of people put the money towards education and upskilling. Here are five ways to transform your return into a lucrative investment courtesy of GQA founder Adam Wadi.
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Each year, thousands of Australians receive a return on their taxes which invariably go towards entertainment, travel or paying off debt. While these spending choices are perfectly valid, they don't offer much in the way of career progression or self-improvement. Adam Wadi, CEO of skills recognition and RPL (recognition of prior learning) provider GQA, suggests treating your tax return like an investment.
"While material goods are satisfying in the short-run, it is far more valuable to invest in yourself and make a positive difference in the long-run," explains Wadi. Here are five suggestions from Wadi designed to make the most out of your tax return; from financing your higher education to finally getting fit and healthy.
#1 Start your own business
“Big dreams are usually the hardest ones to realise, but always the most important. Use your return to take the first step towards starting your own business. Regardless of whether the return goes into a dedicated savings account to reach this goal or goes towards securing a necessary qualification in business management, make it count. Once you have taken that step, there’s the double benefit of earning small business (and/or home office) tax deductions, as well as the additional income from running your own business.”
#2 Get healthy
“Health = wealth. Every dime that goes into getting physically fitter and mentally healthier is money well spent. Invest your return into a gym membership, pilates course, therapist session, boot camp retreat or a membership for a meditation app.”
#3 Educate yourself
“See an RPL specialist to see what qualification you may be able to secure through recognition of prior learning and previous work experience. Having a qualification/s opens up doors, whether it’s getting a pay rise, a promotion, a better job or leading you to further study.”
#4 Dress career smart
“Going on a shopping spree may not seem like the smartest way to spend your tax return but by taking a portion of it and investing in some signature pieces for work, you will actually be investing in your future.”
#5 Learn how to save
“It may seem counter-intuitive to pay someone to help you stop spending money. However, you’d be surprised by how learning to budget and save pays off in the long-run. Take the time to find experts in this field such as a one-man-band or small business who will not charge an arm and a leg for their expertise. Trial the service for a period of three months and see how much you can save with a little bit of know-how and the pressure of being accountable to someone!”