Want to Pay Less Tax?

By Jason Fittler

Don’t like to pay tax?  There are many products out there in the market place which can help reduce your tax. Are you currently undertaking one of these strategies listed below?

1. Investment property – depends heavily on capital growth and is cash flow negative.
2. Protected Equity Loan – you will pay a higher rate of interest.
3. Investment in tree plantations – ATO is currently reviewing these products as to their deductibility however the return is ordinary at best.
4. Gearing into the stock market – high level of risk if not done right.

The best way to pay less tax and grow your wealth is Superannuation
, salary sacrifice into super is the most effective way to reduce your tax and grow your wealth.

The facts:

1. Tax is limited to 15% on the funds salary sacrificed.
2. Through the use of a Self Managed Super Fund (SMSF) your investment choice is unlimited.
3. You can borrow in your SMSF now, so you can buy property if you wish to or gear into the share market.
4. Once you reach age 60 all profits and capital gains in the SMSF are tax free, unlike investments outside super.

The problems:

1. You can’t access your money; if you are truly committed to growing your wealth then you won’t look to access these funds.  In the case of emergency we always make sure that you have quick access to funds. Most good banks now have products which allow you to access a loan straight away.
2. Running a SMSF is complex… But not anymore.  We run a cradle to the grave service looking after the set up of your SMSF all the way through to winding up the fund in your estate. We will also look after your investments, audits and tax returns. This is done through Grow Your Wealth Accountants.

So do you want to pay less tax? Give us a call, (07) 4771 4577 and let's get started.