Ingredients Of A Good Financial Plan – Part 6 Tax

How you structure your tax strategy is dependent on your overall financial position.  There are, however, some broad areas you should look at:

Superannuation – Whether you make salary sacrifice or voluntary personal contributions, superannuation is a highly effective way to reduce your tax burden, whilst at the same time saving for the future.  Check out our article Superannuation for more information.

Deductions – It might seem obvious, but making sure you are claiming all the deductions you are entitled to can have a big impact on your tax bill.

Negative Gearing – Long-term investing using borrowed funds provides the opportunity to negatively gear your investment, thereby reducing tax

Loan Restructuring – the tax implications on investment loans can mean you can save money if you are careful about the way you structure your borrowing.

SMSF – Setting up a SMSF and transferring or purchasing assets through this fund will mean your assets are taxed at a lower rate.  Our article on SMSF will help you determine if this is something that would suit you.

Family Trusts – Setting up a family trust, or a company structure can mean some aspects of your income may be taxed at a lower rate.

Salary Packaging – if you are in a position to do so it can be tax effective to package things like your car and laptop as part of your salary.