1. Pay off credit cards - Yes, this seems a bit boring, but if you have got credit card debt, its likely too be incurring excessive amounts of interest which would be costing you lots of money. It's also a great feeling to be able to get the debt down a considerable amount in one hit.
2. On the subject of debt - use the money to pay off your home loan. You'd be surprised at how much any additional payments off your home loan can save you interest and shorten the loan term in the long run!
3. Don't have a home? Well then consider putting it towards that house deposit if you're saving up for one.
4. Establish a "sleep well at night" savings account. If you have no credit card debt and your mortgage is under control, consider having a sleep well at night savings account. This type of account is great to have as a back-up in case of an unexpected large bill or a drop in income to help you get by in the short term.
5. Balance - without wanting my tips to sound "un-exciting", if you do feel the need to reward yourself with a little retail, consider balance. Can you allocate 50% of the refund to any of the above areas? Anything is better than nothing....
6. If you do want to allocate it to your mortgage or savings account, consider having the refund paid directly into that bank account, rather than your everyday account. It will be much less tempting to spend if you can't immediately access it for the shopping spree.
7. Not getting a tax refund? There could be a variety of reasons why you're not getting any money back from the ATO. I definitely encourage anyone who is concerned about this, to make sure you are going to a good (and affordable) accountant to help you navigate this area and claim all expenses you are entitled too.
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