Yahoo Finance Why this Aussie spends his $3,000 tax return on books
Almost half of Aussies plan to save their tax return for a rainy day.
Prosper Taruvinga moved to Australia from Africa around 10 years ago, and it was once he got here that his love for reading took hold - so much so that now he spends his entire tax return adding to his impressive personal library.
When he first arrived in Australia, Prosper was working as a dishwasher but, after setting up a Facebook page for the restaurant, he was abruptly fired by his boss for fear the Facebook page would bring negative reviews from rival restaurants.
In fact, the opposite happened and, after a couple of well-known partners of sports stars tagged the restaurant in a post, Prosper was promptly offered his job back.
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That’s what kicked off his digital marketing career, and his love of books paved the way for his success.
“Ever since I got here, I started to study my craft and I really wanted to learn and become one of the best in my industry. I decided I had to self educate,” Prosper told Yahoo Finance.
“With my industry, there's always new things every single day but you need to understand the traditional in order to be very effective in the new digital age.
“So you have to understand customers, you have to understand why people buy, you have to understand marketing psychology. So a lot of the stuff that I read is about psychology, and biographies as well - how other people succeeded in different industries.
“That way I'll be able to consult with people in various industries and still be able to give them valid advice.”
Now, Prosper spends the whole financial year adding to his book wishlist and, when his tax return hits his account, he puts in his order.
The ‘gift that keeps on giving’
Despite the current cost-of-living crisis, Prosper said there was nothing else he would rather spend his tax return on.
“When the tax comes in, that money has already been spent. So I just invest it in a gift that keeps on giving,” he said.
“And I think books are like that because, once you learn it, nobody can take that information away from you.
“A book is usually a summary of somebody's life. So, if you don't have the time to learn all the mistakes, and somebody has taken the time, you can learn it all in 30 minutes, and that can actually shape the course of your life.”
And Prosper’s book addiction really is the gift that keeps on giving because they are all tax deductible as well. The ATO allows Aussies to claim expenses for self-education as they relate to their profession.
“Once I'm done with the books, I can resell them again on [Facebook] Marketplace. So, sometimes I get the money back. Or, I actually gift them to my clients,” he said.
How are Aussies spending their tax returns?
Around 40 per cent of Aussies planned to put their tax return into a savings account, according to a recent Compare the Market survey.
Meanwhile, one in five said they would pay off debt, 16 per cent would use it for everyday expenses, and just 5 per cent of respondents would make big-ticket purchases.
Compare the Market’s Chris Ford said many Australians were struggling to cope with the rising cost of living.
“It’s not surprising to see there aren’t that many Australians looking to spend big on their tax return this year,” Ford said.
“Especially after 12 cash rate rises, the increasing cost of energy, gas and fuel - bubbling bills [have] depleted many people’s spare cash flow.
“Saving some cash with the prospect of an economic downturn is definitely a safe play Australians should be considering.”
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