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1. Tax effective 'structures' for small/medium business owners
By restructuring your business and combining companies together with Trusts you are able to achieve asset protection and tax savings.
Appropriate for: Any Self employed/Small business owners.
2. Prepaying Interest
Prepaying interest on an investment property or Share portfolio loan for the following 12 months will result in a larger tax deduction pre end of Tax Year (June 30).
Appropriate for: Anyone with a share loan or Investment property loan.
3. Property Investing
Are you maximising your investment property? Property has two types of depreciation, building costs and fixtures & fittings. Add this to any shortfall in rent meeting the interest repayments (negative gearing) and this can become a very tax effective investment. Note, this does not apply to property which is not renovated and built prior to 1985.
Appropriate for: Those younger than age 55 with savings and/or equity.
4. Share Investing
Due to the Dividend Franking Credit system, investing in companies which pay out franked dividends ensures any dividends that are received are much more tax effective when received by an investor.
Appropriate for: Anyone between the age of 18 and 55.
5. Super contributions
Contributing to your super may enable you to receive the government co contribution which could be up to $1,500 which the government would deposit into your super account at the end of the tax year. Remember to let your Accountant and Super fund know that you have made an after-tax contribution.
Appropriate for: Most Australians earning less than $70,000, particularly those close to retirement age and any self employed person.
6. Salary Sacrificing into Super
Investors have the option of Salary sacrificing into their super, effectively reducing their taxable income and paying tax at the 15% (contributions tax rate) level and not at their marginal tax rates (up to 46.5%).
Appropriate for: Investors approaching retirement age on high incomes.
7. Buying Residential or Commercial property within your super fund (combining strategies 1,3, 5 and 6)
This is an effective way for an individual with a long-term view of the property market coupled with a desire to leverage between 20% to 80% of their current superannuation assets to potentially build their own direct superannuation property portfolio.
The many tax incentives introduced by the Government into superannuation in the last 6 months mean that many Australians may now potentially accumulate wealth faster in a superannuation environment than they could by investing in identical assets outside of their superannuation.
Appropriate for: Those with super balances over $120,000.
8. Mortgage reduction strategies
There are a number of innovative strategies one can implement to help a home owner repay their large mortgage faster. These range from investing in cash flow positive share investments, receiving dividends instead of reinvesting them. If you are self employed, you have even more options.
Appropriate for: Home Owners - A strategy to help all home owners beat the banks.
Source: www.arkgroup.com.au
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