According to recent figures from the Australian Taxation Office, the average tax return is $2000, with more than 40 per cent of people planning to save their return this year.

While it's pleasing to see the good intentions of many, it is still very understandable that people will spend their incoming tax return funds as soon as they receive the cheque in the mail, or the credit in their bank account. New clothes, gadgets and tech items for the house are generally the top items, followed by a weekend getaway which may not have been in the budget.

There are however, are a number of ways we can invest our money, essentially creating stronger spending power for ourselves in the future.

By investing the refund into a high-interest bearing term deposit you can make your money work harder and ensure you have a back-up plan for those unplanned expenses that pop up throughout the year.

Another option is to invest the money into your mortgage. An average refund of $2000 into an offset account with an average mortgage of $200,000 over a 30-year term can reduce your loan term by years and save you tens of thousands on interest.

Borrowers all over the country are seeing the benefits of investing more into their mortgages now while interest rates are low, through either offset accounts or direct repayment of their loan.

Now more than ever before, people are working to give themselves a financial buffer, ensuring they are covered if they are affected by unfortunate circumstances in the future.

A third option for your tax return is to use it for Christmas shopping. Many South West Credit members make deposits this time of year into their Christmas Club accounts, which saves putting those presents on the credit card.

No matter what you decide to do with your tax return, or if you already have it spent, we'll all agree that it is money back in our pockets!

* Sara Morrison is the client services manager at South West Credit.