Tax time: Millions of Aussies to get $2,900 cash boost

Aussies are counting on their tax returns to help with rising expenses. (Source: Getty) (Getty)

Millions of Aussies are waiting to lodge their tax returns, with many desperately in need of the cash.

A worrying one in eight Aussies - equivalent to 2.4 million people - admitted their tax return would be “critical” to their financial health, according to new research from Finder.

Almost one in four said the end-of-financial-year cash injection was “very important" to their budgets.

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The research found one in seven Aussies – equivalent to 3 million people – would be withdrawing their refund to pay for household bills, while 5 per cent would be putting it towards their mortgage.

Thousands of dollars to be returned

The average tax refund is around $2,900. Finder money expert Rebecca Pike said the cost-of-living crisis triggered an over reliance on tax returns.

“There’s a cash flow crisis and many are counting on their tax return to address everyday expenses and get them out of a tight spot,” Pike said.

“If you’re waiting for your tax return to bail you out, you are likely living beyond your means.”

More than 1 in 3 (36 per cent) Australians – around 7.3 million people – plan to put their tax return into savings.

Pike said there were other ways to use your refund that could benefit you financially, like investing it.

“If you get a tax refund this year, it can be tempting to spend it all. But if you invest it strategically, you can generate passive income for years to come,” she said.

“Put it in a high-yield savings account or jumpstart your investing journey to build wealth.”

The data found 4 per cent said they would use their tax return to pay off existing credit card debt, just 5 per cent were planning a holiday with the money, and 3 per cent planned to go shopping.

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