Tax minimisation
Tax minimisation strategies are a legal and legitimate process within the financial planning industry.
Tax minimisation involves focusing on the practical matter of paying only the tax that is legitimately and legally required to be paid. It involves making decisions that reflect individual circumstances and relies on solid, professional tax planning advice. But to fully comply in an environment of constantly changing rules and regulations requires intimate knowledge of all the requirements.
Don’t take risks; call us for insightful assistance in developing a plan that’s right for you. And we’re talking about tax minimisation strategies, not tax avoidance schemes!
Just remember when you’re developing your tax plan, one of the keys to tax minimisation is to not pursue strategies solely for their tax benefits, but to think about them in the broader context of your overall investment strategy.
Tax minimisation is not an “off the shelf” solution, nor is it “one- solution-fits-all’. Minimising tax is all about sound planning and maximising opportunities that relate to unique circumstances, and covers a number of activities, such as:
Reducing Tax-assessable income
There are many options available to you, by implementing investment strategies such as negative gearing and salary sacrificing not only is it a legitimate way of reducing the overall amount of taxable income, but you build wealth effectively. In addition, simple solutions such as claiming every possible tax deduction or buying tax- deductible income protection insurance are effective options in reducing your tax assessable income.
Maximising Superannuation opportunities
Superannuation offers a number of ways to build retirement wealth and reduce your taxation exposure. By salary sacrificing part of your gross salary (pre-tax) into superannuation, you will effectively be minimising your income tax payable and increase your super fund. Funds contributed into superannuation are concessionally taxed.
In addition, by contributing to superannuation with after-tax income, either to your fund or your spouse, you can obtain tax rebates / tax deductions or maybe eligible for the Government co-contributions (depending on your personal circumstances).
Structured Investments
Carefully selecting investment structures with a lower tax rates than the top personal marginal tax rate can significantly lower your overall tax exposure. By investing in Imputation / Insurance Bond funds is one option available to you.
Create your wealth
- Wealth creation is a mindset & discipline
- Wealth creation strategies work faster than saving
- Our simple tips to accrue wealth
By following a few simple practices anyone can improve their financial position. Wealth creation is as much a mindset as it is a discipline. We develop wealth creation strategies for our clients, based on their individual circumstances, to accelerate their wealth.
Here are a few tips below to get you started. But you must stick to the plan.
Our wealth creation tips for financial freedom:
- Save 10% of everything you earn. An active savings plan is the single most important part of a wealth creation package.
- Reinvest the returns on your investments and interest on savings accounts. This will multiply your savings and accelerate your wealth by harnessing the power of compound interest.
- Develop a budget and stick to it. Make sure the budget incorporates your 10% savings plan.
- Adopt a long-term view. Wealth creation isn’t a lottery; it’s a systematic approach to accumulation.
- Leverage the power of passive income streams such as interest, dividends, royalties, rent and capital gains. These streams augment regular income from salary.
- Protect your assets by insuring against the unexpected. Income protection and life insurance will maintain your desired lifestyle should unfortunate events occur.
- Separate your personal and business assets, so you’ll have something to fall back on if the business fails. And hold assets outside your name to protect against possible litigation.
- Maximize the power of superannuation contributions. Super is a tax effective and secure long-term savings strategy.
- Gearing can accelerate wealth accumulation, but if entered into unwisely can also accelerate losses. Don’t negatively gear only to minimise tax; the asset should increase in value over time.
- Get sound, prudent advice from a qualified and licensed Financial Planner who you feel you can trust.
Call us for a holistic approach to your financial needs; we aim to help you make more productive financial decisions.
