Tax Minimisation

Tax Minimisation

Minimising your exposure to tax is one of the least understood and employed strategies for wealth generation. As Australian businessman Kerry Packer once famously declared “if anybody in this country doesn't minimise their tax, they want their heads read.”

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But approaches to tax minimisation are not only limited to high rollers such as Packer. Average mum and dad investors can reap the benefits of tax minimisation and grow their wealth in the process. But keeping the tax man at bay requires specialist advice to implement proven strategies that are 100% above board.



Given the complexity of tax law it makes perfect sense to engage specialist advice when reorganising your financial affairs to minimise your tax bill. Gaining the correct advice that is in-keeping with your own financial position and goals remains absolutely paramount.



Experts can advise whether the following strategies for tax minimisation are right for you. These include:

Reducing capital gains tax liabilities

Splitting incomes Negative gearing Additional

superannuation payments



Capital gains tax:

Capital gain or loss represents the difference in the sale price of an asset compared to its original purchase price. Capital gains tax was introduced in Australia on September 19, 1985. Capital gains tax has subsequently been applied to the transaction of any asset purchased after this date.



Capital gains tax is particularly vicious when assets are transacted within 12 months of their purchase date given it applies to 100% of the capital gain. For this reason, it makes greater sense to hold on to shares or property for longer.



Splitting Incomes:

Essentially, this comes down to deciding which member of a household should have assets in their name in order to create the most tax effective outcome. Partnerships or under companies it is possible to reduce the tax liabilities associated with owning certain assets.



Superannuation

Additional superannuation payments represent a proven strategy for minimising taxation payments while increasing future wealth. Voluntary contributions via salary sacrificing can lower your income tax bracket by scooping payments from your net salary prior to the removal of tax.



Negative Gearing

One of the most popular mechanisms for reducing your tax liability is negative gearing. Although it has received considerable negative attention in the media recently, negative gearing still represents one of most effective means to purchase assets particularly property.



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Tax Minimisation