Millions of Aussies have already spent $1.8 billion in tax refunds they don’t yet have

• The average anticipated tax refund is sitting at $1,177, or $11.2 billion nationwide
• A quarter of Aussies who are expecting a refund (25%, or the equivalent of 2.4 million people) admit they’ve already spent at least some of it, while over one in ten (12%) say they’ve already spent it all
• Over two in five (43%) have used their anticipated tax refunds for indulgent purchases like a new phone or laptop, new furniture, fine dining, concert tickets and collectibles, like Labubus, in the past

As tax time rolls around, new research from ING reveals that Aussies are expecting a significant cash boost, with the average anticipated tax refund sitting at $1,177. This equates to a total expected hip pocket boost of $11.2 billion nationwide, however, many Aussies are already spending money they haven’t yet received.

A quarter of those who are expecting a refund (25%, or the equivalent of 2.4 million people) admit to having already spent at least some of it, while over one in ten (12%, or the equivalent of 1.2 million people) say they’ve spent it all.

The average amount Aussies have already spent in anticipation of their tax refund is $1,529 – adding up to an estimated $1.8 billion nationwide in pre-emptive spending.

Younger generations leading the charge

Millennials and Gen Z are significantly more likely to dip into their expected refunds early. 60% of Millennials and 50% of Gen Z say they’ve already spent or plan to spend at least some of their refund before it’s confirmed – compared to just 23% of Gen X and 12% of Baby Boomers.

How Aussies plan to use their refunds

While some are splurging, most are planning to put their refunds towards:

1. Adding it to their general savings (41%)
2. Cover some essential expenses (24%)
3. Put it in their emergency fund (19%)
4. Put it towards a holiday fund or travel plan (19%)

Over one in ten plan to put it towards their mortgage (12%), while some are putting it towards their home deposit (9%). One in seven (14%) expect to invest, and 5% will add it to their super balance.

Surprisingly, splurges are still common

Despite the majority of Aussies planning to save, invest or stash their refunds, the research found some have used tax refunds for indulgent purchases in the past. Over two in five (43%) have admitted they’ve spent their refund on something extravagant in the past, with the most common purchases being:

1. A new phone or laptop (27%)
2. New furniture (22%)
3. Fine dining or an expensive night out, home renovations or an expensive overseas trip (16%)
4. Concert or festival tickets (13%)
5. Collectibles, like Labubus (12%)

Matt Bowen, Head of Consumer and Market Insights at ING Australia, comments on the report findings:

“It’s clear that many Aussies are counting on their tax refund as a financial boost – but what’s surprising is just how many are spending it before it even hits their bank account. With over $1.8 billion already spent, it’s a timely reminder of the importance of budgeting and planning ahead – especially for younger Aussies who are leading the charge in early spending. And while it’s encouraging to see how many plan to save or invest their refund, the temptation to splurge is still strong for a significant number of people.

“We’re also seeing growing curiosity around how technology might be able to help at tax time. While most Aussies haven’t yet used AI to prepare their tax returns, nearly one in three (30%) say they’d consider it. It’s a sign that Aussies may be open to new tools that could assist the in the process.”

Matt’s tips on navigating tax time:

1. Wait for the refund before you celebrate. It’s exciting to think about what you’ll do with your tax refund, but try to hold off on spending until it’s in your account. That way, there are no surprises.
2. Start early, breathe easier. Getting a head start on your tax return can make the whole process feel less overwhelming. Even just gathering your documents early can help you feel more in control.
3. Think about what feels right for you. Whether it’s saving, treating yourself or paying off something important, your refund is yours to use in a way that supports your goals. There is no one-size-fits-all answer.  
4. Remember that tax time isn’t just about refunds – it’s your annual financial reset. Take a moment to zoom out and check in on your money game. Are your goals still aligned with where you want to be? Are your spending and saving systems helping or holding you back? Use this window to fine-tune your strategy and set yourself up for a stronger financial year.
5. Stay safe and scam-savvy. Tax time can attract scammers, so keep an eye out for anything that feels off. If in doubt, go straight to official sources, like the ATO website.