How to make fast cash and save your ATO tax refund and make $70,000
The ATO’s online services is down with tax refunds of up to $1080 are set to be delivered today, allowing consumers to make quick cash and save $70,000. CALCULATE HOW MUCH MONEY YOU CAN MAKE
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The Australian Taxation Office’s website is back online after its website crashed on Friday as tax refunds of up to $1080 began to land in taxpayer’s bank accounts.
A spokesperson from the ATO said: “ATO online services and client portals are now fully available. We apologise for the inconvenience caused by the earlier issues.
“The issue did not impact the processing of already lodged returns in any way. The ATO has already processed more than one million returns and 500,000 refunds worth $1.2 billion were paid into accounts on Friday.
“People will continue to receive refunds from next week.”
On Friday, an error message on the ATO website said online services were offline for scheduled maintenance hours after the scheduled 7am completion time,
In a tweet, the tax office wrote: “Some of our services (incl. the portals & our online services via myGov) are currently unavailable or experiencing slowness. We’re working on the issue & apologise for the inconvenience. Stay tuned for updates.”
Some of our services (incl. the portals & our online services via myGov) are currently unavailable or experiencing slowness. We're working on the issue & apologise for the inconvenience. Stay tuned for updates. pic.twitter.com/oTQNDfC6WP
— ato.gov.au (@ato_gov_au) July 12, 2019
A spokesperson from the ATO told News Corp: “Some of our client facing services including our portals and online services via myGov are currently experiencing intermittent slowness or are unavailable.”
“This morning we experienced a technical issue with a communications switch. We are working to restore services as quickly as possible.
The spokesperson said the outage would not have any impact on people who have already lodged their returns.
“We have already processed over 1 million returns and 390,000 refunds with a value of $882 million have already been paid into accounts this morning,” the spokesperson said.
“A further 110,000 refunds worth $292 million will be paid into accounts this afternoon. Today, a total of 500,000 refunds worth $1.2 billion will be paid into peoples’ bank accounts.
“We’re working on the issue and will advise through social media and our other online channels as updates become available.”
The @ato_gov_au has received over 1 million tax returns for the 18/19 year!
— Josh Frydenberg (@JoshFrydenberg) July 11, 2019
As of this morning over 1.1 million tax returns have been lodged compared to around 600,000 at the same time last year. Despite Labor’s opposition, Australians have now got the tax cuts they voted for!
Treasurer Josh Frydenbeg yesterday confirmed that 1.1 million Australians have already lodged their tax returns for the 2018-19 financial year.
The Coalition hopes consumers will go out and splash the cash in an attempt to reinvigorate the sluggish economy, but Aussie taxpayers might be better off holding their dollars close.
New superannuation investment data collated by Envision Financial for News Corp Australia has found consumers could earn more than $70,000 just by saving either $20, $50 or $100 a week from their forthcoming tax refund.
While many maybe tempted to just splurge on the luxury item they haven’t been able to afford, Specialist adviser and Director of Envision Financial Luke Smith told News Corp the data shows how Australians could make more money from their tax refunds.
The tax cuts give those with a taxable income of up to $37,000 relief of up to $255, while others earning between $37,001 and $47,999 will receive $255 to $1080 extra back.
Workers paid between $48,000 and $90,000 get the full $1080 cut, which gradually reduces to zero for those earning between $90,001 and $126,000.
Mr Smith analysed the scenarios of a $255, $855, and $1080 tax cut if consumers were to save just $20, $50 or $100 a week.
SEE YOUR MONEY GROW TO $70,000+
See how these amounts could grow your nest egg below:
The financial planner said if a 25-year-old added $1080 to their super account straight away, they could see it balloon to $23,400 if it was invested at an average of 8 per cent over 40 years until they turn age 65.
And given the same conditions, $855 could climb to $18,500.
“Not bad for money you were not expecting,” he said.
“Over 30 years its $8,600 so time has a lot of value.”
Mr Smith added a voluntary super contribution would also deliver tax concessions.
“$1080 should provide a tax saving of approximately $205 assuming a marginal tax rate of 34 per cent” he said.
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SAVE CASH WITHOUT EVEN THINKING
But super may not be a priority for everyone, so for those just keen to save it and not spend it all at once. Mr Smith said they should consider putting the money into an account not linked to their online banking and set up a regular payment debit.
“What you can’t see you don’t access and what you direct to savings you don’t miss each fortnight or month,” he said.
“This can limit discretionary impulse purchases or airplane tickets to Coachella after too many drinks on a Friday night that destroys your savings account.”
MAKE MORE WITH YOUR PROPERTY
For those with a home loan, depositing $855 or $1080 in an offset account could also bring benefits.
“This would reduce interest costs incurred, and then you could use the money in June each year for a tax deductible contribution to super. This would let you double dip with the same money,” he said.
Property owners could also use the refund for improvements around a rental property to keep tenants happy.
“Costs are generally [tax] deductible and a happy tenant is a long-term tenant,” he said.
TRY YOUR HAND AT AN ETF, JUST LIKE A STOCK
Savvy Aussies might also want to consider an Exchange Traded Fund (EFT) to grow their money, Mr Smith explained, which they could buy into with as little as $500.
An EFT is a basket of securities that tracks an index or a sector and is usually done at a low cost.
“Depending on the exposure the rate of return could be a lot more than cash or term deposits,” he said.
USE IT TO HELP YOUR KIDS SAVE
Mr Smith added families could use the $855 or $1080 to kickstart a savings plan for their children. They could continue to grow this by adding a portion of their pocket money or part-time work earnings each week.
“With a starting value with of $855, adding $40 per month contribution from ages 10-18 could be valued at $5,500 at a rate of 4 per cent,” he said.
“Not only will it cover the ticket overseas for a gap year but it may also teach them regular savings behaviour, the value of compound interest and also investment options as the value grows.”
SWITCH TO PRE-PAID PLANS
He said across all tax refund brackets, Aussies would do well to consider prepaying fixed costs such as mobile phone plans, utility bills or rates.
“It takes the pain out of a monthly or quarterly bill,” he said.
“Then set up a direct debit for a smaller amount more often as that is normally easier to manage cashflow wise rather than finding the entire bill.”
SEE HOW MUCH YOU’RE OWED HERE IN OUR CALCULATOR
PAY DOWN INTEREST-FREE BUYS
Mr Smith added consumers should also consider paying down interest-free purchases.
“Interest free is great if used correctly … so the items you already have could cost you a lot less if you use the tax refund to get in front of the minimum payment,” he said.
“$855 would pay off 17 per cent of a $5000 purchase.”
He said impulse purchases could also be avoided by depositing the money in a savings account not linked to online banking.
RETAILERS CAN’T WAIT
Meanwhile, retailers are champing at the bit for long-awaited relief as the tax cuts put extra cash in Australians’ pockets within days.
Australian Retailers Association executive director Russell Zimmerman says his sector has “done it very tough” over the last few years.
But he believes tax cuts that cleared federal parliament last week, giving low and middle-income earners an extra $1000 when they file their 2018/19 tax returns, are “great news”.
So too are recent cuts to the official interest rate that give mortgage holders a little more cash to splash, he says.
“We’re looking forward to the consumers actually spending their tax cuts,” Mr Zimmerman said.
— with AAP
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