Tax Planning Strategies
You can save on your taxes in many different ways, just remember to always keep your investment plans in mind. Make sure you give yourself a lot of time to review everything before tax time.
Some ways to save on your taxes are:
- contribute as much as you can to your superannuation
- take as many deductions as you are legally able
- look into tax effective investments.
Some deductions that may be available are:
- Self-employed superannuation contributions up to your maximum deductible contributions
- Income protection premiums
- Deductible amount for pensions/annuities
- Interest/fees on borrowing for investment purposes
There are three main types of tax-effective investments:
- Retirement income stream investments - Any fund earnings are tax-free and you can defer lump sum tax on eligible termination payments. Income payments are taxed at marginal tax rates (Personal income tax rates), however a 15% tax rebate may be claimable and a tax-free amount available. For example – Allocated pensions and annuities.
- Superannuation - Taxed at 15% on investment returns. You can defer lump sum tax by rolling over eligible termination payments.
- Shares & Managed Investments - On franked dividends a credit is given for the company tax already paid. These credits, known as the imputation credits, can reduce your income tax.
A WealthSure adviser can show you the best ways to save when it comes to your taxes depending on your personal needs and objectives. Contact us to arrange a free initial interview.