As we are almost at the end of the financial year, here are some simple tips that will help maximise your tax refund.
1. Make Investments in Property
Although your tax return is nowhere close to the value of a house deposit, you can still use it to invest in a property. With platforms like BRICKX making their way into real estate, you can invest as low as AUD 100 in a residential property. It enables fractional property investment, letting you buy a small percentage of the property. Every property that the platform buy gets split into 10,000 bricks and are sold to investors (like you). Consequently, you can also earn a percentage of the rental yield.
2. Get a High-Interest Savings Account
Putting your tax return in a high-interest savings account is one of the easiest and safest ways to optimise the return. You can opt for an account that offers competitive interest rates, such as ME Online Savings Account and ING Savings Maximiser currently offers 2.80% p.a. variable interest rate. Remember to review the terms and conditions before you open any savings account.
3. Micro-investing is a Smart Move
If your tax return does not exceed a few hundred dollars, it can be difficult to invest in the share market. For example, you need at least AUD 500 if you intend to trade on ASX.
However, with the advent of various micro-investment platforms like Spaceship Voyager, you can invest in domestic and international stocks with just AUD 1.
All you required to do is to select from two investment portfolios, and the platform will put your money in the market.
Besides, the balances below AUD 5,000 will not attract any fees, thus making it a brilliant option for your tax return.
For tax consultation and other financial advice, contact our team at Zimsen Partners.