How To Reduce Taxable Income

(02:42): Now, the last strategy involves superannuation again. Superannuation is a really good vehicle, as it allows you to save for your retirement over the long term, and to reward you for locking away your money for a long period of time, the super system gives you really good tax rates on both capital gains and investment income within the superannuation system.

(03:02): For instance, investment income or interest generated in super, is only taxed at 15%. In pension phase, when we do retire, it’s even better at 0%, whereas outside of super, that income is taxed at our marginal tax rate.

(03:17): This does sound too good to be true as it is a great tax benefit. To limit the amount that it costs the government, there are annual limits, as to how much we can put into super from personally held assets.

(03:33): So there you go. There’s four simple strategies among several that you can look at in order to reduce tax this financial year, and reduce leakage of tax from your cashflow during this difficult COVID-19 period just as we looked at doing at the aftermath of the global financial crisis in 2008/2009.

(03:51): Please note, this is not advice, and you really do need to sit down with a qualified financial planner in order to discuss these strategies, your goals, and your objectives in order to formulate a plan in order to reduce tax this financial year. If you found this video informative, please give us a thumbs up, subscribe to our channel to be kept up to date with any future videos that we present.