The stage three tax cuts have landed, putting an extra spring in the step (and extra $$$ in the pockets) of many Australians!
Most taxpayers will start to see the cut in their take-home pay, with many looking at roughly $100 a fortnight more. At Green Associates, we get that the cost-of-living pinch is still real, and many will put that money towards easing their everyday expenses.
But for those fortunate enough to have some wiggle room, you might wonder where you should put that extra $100? Here are three popular options to consider:
Should I Pay Down My Home Loan?
Australia’s current mortgage rates (around 6.5%) can feel like a heavy burden. Throwing your tax cut towards your mortgage can significantly reduce your interest repayments in the long run.
Australia’s current mortgage rates (around 6.5%) can feel like a heavy burden. Throwing your tax cut towards your mortgage can significantly reduce your interest repayments in the long run.
Should I Grow My Emergency Fund?
Earning interest on your savings can be a smart way to build wealth. While current savings account rates (around 4.5%) may not seem like much, consistent saving adds up over time. Consider a high-interest savings account or a term deposit to watch your money grow.
Earning interest on your savings can be a smart way to build wealth. While current savings account rates (around 4.5%) may not seem like much, consistent saving adds up over time. Consider a high-interest savings account or a term deposit to watch your money grow.
Should I Boost My Super?
Superannuation offers a powerful way to save for your golden years. The assumed return on investment for super is around 7.5%, making it a great option for long-term growth. Contributing extra each week can significantly increase your retirement nest egg, setting you up for a comfortable future.
Superannuation offers a powerful way to save for your golden years. The assumed return on investment for super is around 7.5%, making it a great option for long-term growth. Contributing extra each week can significantly increase your retirement nest egg, setting you up for a comfortable future.
But What Does This Mean In Terms Of Actual Dollars?
For explanatory purpose only, we’ve done the calculations on the pay offs for each option, based on the average annual Australian salary of $98,217.60.
The best option for you depends on your individual financial goals and situation. And this is where an experienced wealth manager can help you navigate these choices and create a personalised plan to maximise your tax cut benefits. Contact us today to discuss the potential of your extra $100!
Please note: This blog is for informational purposes only and should not be considered financial advice. Please consult a licensed financial advisor before making any financial decisions.
