Perhaps this is unique to Australia, but young people seem to think of their tax refund as a sort of lottery win. However, if young people, and anybody for that matter, will see tax refund as an opportunity to stack up on their financial responsibility, then its benefit can multiply by a factor determined by your discipline. Next time your tax refund arrives, take it as means to a productive end and silence the inner boy wishing for short-term enjoyment. These are foursmart tax refund tips to apply.

1.    Put it into your super

It would be a good idea to add any tax refund to your super unless you’re already maxing out on contributions through other means, like a salary sacrifice arrangement. The fact that the older you – 70 and above – gets better tax treatment should also encourage you to subscribe to this tomorrow‑proofing option.

2.    Earn Interest on short-term savings deposit

You can earn a substantial profit on your tax refund by putting it in a savings account for a short stretch. Most Australian bank offers between 2 and 4% on their savings account, with some requesting minimum monthly contributions.

3.    Pre-pay your recurring obligations

It is a good idea to pay bills that are recurring from your tax refund. Bills such as insurance, vehicle registrations, licenses can be paid for before they roll around. Don’t wait till you’re caught off-guard and need to scamper around or channeling the money you could have invested into paying daily compounding rates in the future. Bite the bullet, stay firm, and withstand those urges for gratification today till your bills are taken care of.

4.    Invest in your business

If you have a business, you can use your tax refund to give your business tools, assets, and resources a much-needed facelift or outright overhaul. Moreover, as an SBE, anything bought for your business less than $20,000 is tax deductible too. That’s extra incentive to encourage you to spend on your business.

The arch-enemy on your path to good financial preparation is discipline. Discipline to recognize what is short-term and what carries long-term benefits, and receiving tax refunds can further make the water murkier. Blank out those short-term expenses and see your tax refund as a gift that’s meant to help you become a better, more financial secure version of  you, tomorrow.