The Holiday and Travel Magazine

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Sunday, 29 June 2025

From Refund to Runway: Where Aussies Are Jetting Off with Their Tax Returns

A Mid-Year Travel Boom Fueled by Tax Time

As the end of the financial year wraps up in Australia, a new trend is emerging—not in shopping centres or savings accounts, but in departure lounges. A new survey from TravelInsurance.com.au reveals that more than half of Australians (56%) are choosing to spend all or part of their FY 2025 tax refund on overseas travel. Rather than splurging on gadgets or paying off bills, many Aussies are seeing their refund as the golden ticket to a mid-year adventure.

Japan and Europe: The Clear Favourites

Leading the charge are two timeless favourites: Japan and Europe. With their irresistible blend of culture, cuisine, and history, both destinations offer excellent value during the quieter months of late summer and early autumn. Japan remains a top pick for its blend of tradition and modernity—from Tokyo’s neon streets to the tranquillity of Kyoto’s temples.

Europe continues to captivate travellers with its diverse offerings. Whether it's cruising through the Greek Islands, enjoying vineyard tours in France, or wandering cobblestone streets in Prague, the continent promises endless possibilities for tax-refund travellers.

Other Hot Picks: NZ, Bali and Thailand

Rounding out the top five are New Zealand, Bali (Indonesia), and Thailand. These destinations remain popular for their proximity, affordability, and unique charm. New Zealand offers rugged natural beauty just a short flight from home, while Bali and Thailand deliver a mix of relaxation and adventure, from spa retreats to cultural temples and tropical beaches.

With favourable exchange rates and established tourist infrastructure, these locations offer travellers great value for every tax-refund dollar.

Spending Smart: Experiences Over Expenses

Interestingly, most Aussie travellers aren’t using their refunds to cover big-ticket items like flights or hotels. According to TravelInsurance.com.au CEO Shaun McGowan, the majority have already budgeted for the essentials. Instead, the tax return is being used to enhance the trip—paying for guided tours, culinary experiences, and local attractions that turn a good holiday into a great one.

**Where Aussies Aren’t Going**

While destinations like Japan and Europe are trending, others didn’t fare so well. The United States, South America, the United Arab Emirates, and Africa were among the least likely destinations for Aussie travellers planning to use their tax return. High airfares, long travel times, and economic factors may be influencing these results.

Domestic and Cruise Options Still on the Radar

Although international destinations dominate the list, 8% of Australians say they’ll travel within the country using their tax refund. Another 6% are setting sail on cruises, taking advantage of deals and all-inclusive packages. However, 30% of Australians reported that they won’t be spending their refund on travel at all, opting instead to save or redirect it elsewhere.

As July approaches and refunds begin to land, one thing is clear: for many Australians, tax time means takeoff.

For more information about the survey and travel insurance options, visit:
https://www.travelinsurance.com.au/

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