For many Aussies, tax return season brings a little financial breathing room. Whether it’s $200 or $20,000, it’s tempting to treat yourself, particularly in today’s cost-of-living crunch, but what if that refund could do more than cover a splurge?
When it comes to tax season, most people are thinking about what they need to capture in their tax return, not how to use any tax refund they may receive. We thought it would be helpful to share some real data about some of the benefits of using your tax refund to invest in crypto.
Your tax return is not part of your regular budget, so there’s less emotional friction in letting it grow long-term.
It’s a once-a-year lump sum, ideal for an intentional strategy like topping up your crypto investments or using it to fund a DCA (Dollar Cost Averaging) strategy.
The right approach depends on your personal goals and circumstances. If you’re unsure which suits you, here’s a quick breakdown.
When you zoom out? The historical numbers speak for themselves.
Let’s say you had invested just $1,000 of your tax refund into Bitcoin at the end of each financial year.
Here’s what your $1,000 investment for the past 5 years would look like today:
Yes, crypto can be volatile and experience ups and downs. However, a $1,000 investment each year over the past five years has delivered strong capital growth. Even a modest yearly investment (e.g., using your tax return) can produce large capital growth.
Note: The assumed investment date is around early July each year, aligning with the end of the Australian financial year (EOFY = June 30).
This simulates the behaviour of someone receiving their tax refund and investing it shortly after. It does not represent an accumulation of funds.
Important: past performance is not an indicator of future performance.
Sure, like any asset, crypto has its ups and downs. However, crypto can be part of a balanced investment portfolio.
Bitcoin is one type of crypto and it has had significant capital growth over the past decade. And you don’t have to go all in. Small investments can make a big difference.
Make a one-off top-up and let it ride. You’ll thank yourself next tax season.
Use your refund to fund automated weekly, fortnightly or monthly buys, smoothing out the bumps and building consistently.
Bamboo lets you access a curated crypto portfolio. It’s a simple way to spread your investment without needing to be an expert.
Treating your tax return like a bonus is fine. But turning it into something that can potentially build over time? Strategic. Crypto, particularly Bitcoin, has shown impressive growth and resilience over time.
👉 Make your refund work for your future.
As always, before you invest in anything, it is important that you understand what you are investing in and make sure that the investment is aligned with your financial needs and circumstances. You should always do your own research. If you are still unsure whether crypto is the right investment for you, consider getting your own financial or professional advice. Our blog provides factual information only and is not financial advice or a substitute for getting your own financial advice.
Also, there are risks associated with investing in crypto. You should consider all these risks. We have some information about risks, and you should read this (if you haven't already).
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