Australian coins
Australian coins

How you should spend the governments $750

As tax return season begins for Australia, approximately 5 million Australians will also notice an additional $750 in their bank accounts this week.

As part of the Federal Government's COVID-19 economic plan, low-middle income earners, pensioners, veterans and carers will receive the $750 stimulus payment.

University of Southern Queensland's finance expert Associate Professor Peter Phillips said while it may be tempting to spend the money he advised against it.

"This is the second of 750 payments as part of the coronavirus stimulus package," he said.

"The general idea is to put cash in people's pockets so that they spend it and that cash flows through the system.

READ MORE: Aussies who will get $1080 tax perk

"It's is really aimed at helping the most vulnerable in society.

"I think in general while this is a stimulus package and the government wants you to go and spend it, I think the best approach for people is to wait to use it."

Mr Phillips said that it was obvious that people would need to allocate the money to immediate expenses but also suggested people look at what they could do to make the most of their $750 or potentially grow it.

"If you can afford it or if there is a chance you can afford it is always best to be a little circumspect about it, just think about it for a moment and if you don't need the money right now could you save it, think about if you really the money at all in the foreseeable future and if not maybe put it towards your superannuation."

Mr Philips said regardless of anyone's current financial situation, people should avoid unnecessary spending.

"I think impulse purchasing is something people should avoid, we're all uncertain about what is going to happen, the government doesn't know and no one knows what the future holds - the important thing is to not waste it."

Mr Philips said he expected the government to continue playing an active role in shaping the countries economy by implementing more stimulus payments in the future.

"It has been such a shock to the systems that you would expect the government to play some role in the coming months,"

"Targeted schemes to encourage people to do something, ways to boost up the economy will probably be the focus."

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