A big part of a financial planner's role is to minimise the tax you pay as much as possible, this even includes the tax your loved ones will on the assets you leave behind when you pass away.
Most people understand that if you want to make before-tax contributions to your super, you can salary sacrifice via payroll, producing a tax saving.
There are a fair few strategies that we’ll be able to use immediately with most of our new clients to help achieve their retirement goals.
Picture your retirement. You might see yourself spending time with the grandkids. Perhaps picking up a neglected hobby.
You might even plan to pack up your worldly possessions and hit the road for greener pastures.
Most people aren’t aware of the fact that their superannuation fund has an earnings tax rate of 15% applied to the income. For example, if you have $500,000 in super, and have investment earnings of 5%, you will have to pay tax of $3,750 (15% x $25,000). This happens ‘behind the scenes’ and is automatically deducted by your superannuation fund.
It’s that time of the year again, when we send off our tax information and pray to the accounting gods that we end up with some sort of a refund. It can sometimes seem as though the ATO picks a number out of the air when determining what sort of refund/payment we are eligible for, however it’s really a fairly simple equation:
Gross Income – Allowable Deductions = Taxable Income.
Dallas Davison, Michael Hogue and Ali Hogue.