Tax Minimisation Versus

Tax Avoidance

There’s a fine line between

minimising your tax bill and

rorting the system, but as an

investor it makes sense to use

all legitimate means possible to

keep the tax man at bay. Tax

minimisation as opposed to

avoidance demands 100% legal

strategies and professional

advice for doing so.

More info on:

http://www.chaseedwards.com.au/

Proven strategies for minimising

taxation include:

Reducing capital gains tax

liabilities

Additional superannuation

payments

Negative gearing

Dividend franking credits

(SMSF)

More info on:

http://www.chaseedwards.com.au/

The best way to avoid a large capital gains tax

liability is to hold assets for greater than 12 months. If

you buy and sell property or shares within 12 months

expect to pay tax on 100% of the capital gain. After

12 months you are only liable for CGT on 50% of the

capital gain.

More info on:

http://www.chaseedwards.com.au/

Topping up your

superannuation contributions

via salary sacrificing is a tried

and true strategy for tax

minimisation. On the one hand

you are reducing your taxable

income, and on the other you

are further contributing

towards your retirement

savings for later in life.

More info on:

http://www.chaseedwards.com.au/

Property owners across Australia

have been building their

financial nest eggs with the

assistance of negative gearing.

Put simply, negative gearing

reduces your taxable income by

providing an avenue for

offsetting the loss against a loan

used to purchase a property or

other investment.

More info on:

http://www.chaseedwards.com.au/

Owning shares via a self-managed superannuation

fund provides significant tax concessions in the form

of franking credits. When a self-managed super fund

is in the accumulation phase – i.e. accumulating

assets, tax is only paid at a rate of 15% for

investment earnings.

More info on:

http://www.chaseedwards.com.au/

The Australian Tax Office is placing renewed pressure

on business expenses, which have traditionally been a

favourite avenue for tax avoidance. Claiming petrol

for the family car or writing off fake invoices are

amongst some of the most well-known tax lurks

currently in circulation.

More info on:

http://www.chaseedwards.com.au/