Around 10 million low and middle income earners will receive a tax refund of up to $1,080 over the next few months. The two rate cuts would also mean people could save $1,000 per annum on a $400,000 mortgage, although making the same payment at the lower interest rate would help them get rid of a mortgage quicker.
Nerida Cole, head of advice at Dixon Advisory, had three suggestions of steps people could take to review their finances.
These were: Paying down high cost debt such as credit cards first, then the mortgage; looking at long term investments including super and finally, reviewing the rules of super and if they could be boosting contributions.
She said: “Keeping on top of debt is important and making sure you are paying down high interest loans and credit cards as fast as possible is a key move.
“For younger super fund members, taking a more growth focused approach is usually the way to go because they have more time on their side.
“We have an ageing and growing population – that makes funding retirement one of the biggest ongoing challenges we face as a nation.”
