Tips on how to use your tax returns

For many Australian workers tax time brings with it the welcome news of a tax refund, also known as a tax return. However, while it’s very tempting to spend your windfall on a fancy holiday or a shiny new car, there are some other options you should consider that could help you secure your financial future. Here are some useful tax refund tips.


Why not try and smash your savings goals by adding your tax refund to your savings account? Depositing a substantial amount can help you to achieve your savings goals sooner, which may include:

  • buying your first home
  • going on your dream holiday
  • buying a new car
  • saving for a rainy day.

A boost to your savings can also come in handy for those unexpected expenses, like medical bills, vet bills and car repairs.

Savings options

Whatever your savings goals are, we’ve a range of products that can help you reach them.

Among our popular savings accounts is the NAB Reward Saver, which offers you a total interest rate of 5.00% p.a. if you save each month and make no withdrawals. It’s an ideal choice if you want to grow your savings. And along with other NAB savings accounts, the Reward Saver lets you set and track your savings goals in the NAB app.

Another option is a term deposit, which offers you a competitive interest rate over a fixed term, ranging from 30 days to five years. If you withdraw funds before your term ends, the interest accrued on the initial deposit will be subject to a sliding scale reduction based on the time left on the length of the term.

Pay off your debts

According to the Australian Bureau of Statistics, average household debt in 2021-21 was $261,492, opens in new window, a 7.3% increase on the previous year. Using your tax refund to pay off a portion or all of your debt may be able to help you to keep atop of your household finances.

Paying off loans

If you have a personal loan or a home loan, you may be able to make additional repayments, which can reduce your balance and interest payable so you can pay off your loan sooner.

For more on how to pay off your debt, read our tips on managing your debt.

Top up your superannuation

Add to your retirement nest egg by making an additional contribution to either your super fund or your spouse’s. However, before you do so it’s important that you consult the ATO’s website to learn how to make a personal contribution, opens in new window, along with the potential impacts.

Invest in the share market

More than one-in-three Australian adults own listed shares, opens in new window according to the Australian Stock Exchange (ASX), and with the proliferation in mobile share-trading platforms, it’s easier than ever before to buy and sell shares.

However, investing in shares carries risk, so it’s best to do your research, seek expert advise and follow the latest market news before building your share portfolio. For more on trading shares online, check out nabtrade, our online investing platform, opens in new window.

Renovate your home

Add value to your home by renovating it. Your tax refund may be just what you need to update your bathroom, buy a new kitchen or build an extension.

But before you start your reno, you should note that property markets can go up as well as down, just like any other investment – putting in an ensuite bathroom doesn’t guarantee you’ll get more for your house than what you bought it for. You should also learn about your local council guidelines and regulations before you decide to renovate.

Related products and services

Explore other life moments

Terms and Conditions

New term rate change: When your deposit matures, a higher or lower interest rate may apply to any subsequent term.

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article. Before acting on any advice, you should consider whether it is appropriate for your circumstances and view the Personal Transaction and Savings Products Terms and Conditions and our Term Deposit Terms and Conditions. Target Market Determinations for NAB products are available at NAB products issued by NAB. See our indicator rates for deposit products and term deposit indicator rates.

You should consider the Terms and Conditions, Fees and Charges and Financial Services Guide relating to the NAB products (available in branch, by calling 13 29 28 or on our website) before deciding whether to acquire, or to continue to hold, the product. See our indicator rates for deposit products.