Major changes to tax and superannuation have just been approved by the Government in early December 2016.
1. Maximise Super Contributions – Large amounts now for possibly the last time.
2. After you’ve maxed out your Super tax deductions – what else is there?
One of the most effective ways to reduce your tax is through super contributions.
The second is to prepay interest on an investment asset.
One solution is to prepay interest towards a portfolio of shares that are capital protected (meaning the value of the initial portfolio is 100% protected if the market falls).
This has the effect of getting a tax refund and then using it to help fund owning a protected share portfolio,usually for a 2-year period.
This strategy doesn’t apply to everyone – our Wealth Advice Team must pre-qualify you to ensure you will be better off from this strategy and will then provide you with a Statement of Advice which clearly outlines our strategies and advice for you.
3. Establish a “Bloodline Will” to keep your money and assets in your family
We believe a “Bloodline Will” (or a “Lineal Descent Will”) is possibly the most important thing you can create for your family.
- the passing of the capital assets or proceeds is limited to the Will-maker’s bloodline;
- income may be distributed to a broader range of beneficiaries, including in-laws (at the discretion of the trustee);
- assets are protected from attacks against beneficiaries, whether from personal creditors or theFamily Court;
Other General Tax Planning Strategies
- Reduce your home loan
- Top up your Super
- Have a holiday
- Deposit for an Investment Property
- Upgrade your Car