Do you have a tax refund waiting for you?
Are you due a tax refund?
You might be surprised to know that over 80% of applicants have overpaid their tax over the past 5 years.
While we can’t say how much your refund is likely to be, on average Kiwis pay approximately $400 too much in a year, and tax refunds have even been known to be as much as nearly $40,000!
Your outcome depends of course on your personal circumstances, such as how long you’ve worked for, how much you’ve earned, your family status, and more.
The tax year runs from 1st April to 31st March each year, and the IRD usually releases the tax refunds in June.
Once you’ve received your tax refund, what’s next?
Will you blow your windfall on a shopping spree, or put it to work for you in a more constructive way?
Here are our suggestions:
Save your tax refund as an emergency fund
It’s always good to have an amount of money stashed away as a buffer. It doesn’t have to be a huge amount, just something you can call on in an emergency. If you do encounter unexpected circumstances, and need more than your emergency fund, you can easily contact us for a personal loan.
Pay Down Debt
If you have existing debt, you could use your tax refund to pay some of it off. If you’d like more information on how to manage your debt, this article will be helpful.
Contribute To Your Retirement Fund
Contributing extra towards your retirement is something you’ll no doubt appreciate further down the line. Do you have a retirement fund in place? At NZCU South we have partnered with Fisher Funds to make the Fisher Funds KiwiSaver Scheme available to our members, to ensure that you are well prepared financially for your later years.