Tax Strategies

Maximising the $1.6m Pension Cap

17 December 2019

From 1st July 2017, the amount of capital that a member can have in the tax-free retirement (pension phase), is limited to $1.6 million. This means the pension earnings exemption only applies on $1.6 million of the member’s superannuation balance, and the earnings on the excess superannuation balance is subject to the normal 15% tax.…

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Reduce tax on holiday travel by 50% for overseas employees

19 November 2019

This tax strategy only applies to overseas employees working in Australia, and Australian residents working overseas. Under the FBT legislation the taxable value of holiday travel costs (flights, accommodation and meals) provided to these employees (and their families) are reduced by 50% if they travel back to either: the town where they lived before being…

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Can a Racehorse Beat the ATO?

14 October 2019

The first tax issue to consider with owning a racehorse is whether you are operating as a hobby or a business. Generally, it is difficult to demonstrate to the ATO that you have a racing business unless it is associated with breeding or training activities and is of significant scale. The tax benefits of owning…

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Top 10 Tax Strategies for Rental Property Investors

16 September 2019

These 10 tax strategies apply to rental property investors produce the biggest tax savings (on average). Family trusts – Provides asset protection, income splitting, 50% CGT discount & flexibility. Refinancing the family home – Ideal when renting the ‘old’ family home. Negatively gearing the family home – Asset protection, capital growth & tax savings. Holiday…

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Tax Strategy | Establish a Foreign Company

10 September 2019

For Australian residents who wish to conduct a trading or investing business overseas, this strategy involves incorporating a company overseas. Typically, the overseas company will be incorporated in a country with lower tax rates than Australia, and have foreign directors. If the foreign incorporated company ensures its Central Management & Control (CM&C) is overseas (and…

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Tax Strategies – Top 10 for Employees

13 August 2019

These 10 Tax Strategies apply to the majority of employees & produce the biggest tax savings (on average). Tax Strategy 1 – Salary Packaging Private Motor Vehicles Makes private motor vehicles tax deductible (average $3,000 tax savings pa). Tax Strategy 4 – Transporting Heavy or Bulky Equipment Makes home to work travel deductible (average $3,000…

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Tax Strategies – Top 10 for Business

9 July 2019

      These 10 tax strategies apply to the majority of businesses & produce the biggest tax savings (on average) TS 1: Salary Packaging Private Motor Vehicles – Makes private motor vehicles tax deductible (average $3,000 tax saving pa). TS 12: Concessional Super Contributions – $25,000 deductible contributions cap (per taxpayer). TS 32: Change…

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Tax Savings Strategy 249 | Smartwatch

25 June 2019

A smartwatch is a wearable computer in the form of a wristwatch. Their functionality is similar to smartphones and includes:  Mobile apps. Mobile operating system. Wi-Fi/Bluetooth connectivity. Portable media players, with FM radio and playback of digital audio and video files. Making and receiving phone calls.  Sending and receiving emails. Digital cameras. Heart rate monitors.…

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Tax Savings Strategy 224 | Employee Remuneration Trusts

14 May 2019

An Employee Remuneration Trust (ERT) arrangement involves a trust being established to facilitate the provision of payments and/or other benefits to employees of an employer. The trustees provide the benefits at the direction of the employer. This strategy is useful to retain and reward employees that are critical and important to the business’s success. A…

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Tax Savings Strategy 221 | Bitcoin

16 April 2019

Bitcoin was created in 2009 by Satoshi Nakamoto as the world’s first cryptocurrency and is the biggest. Currently there are 669 cryptocurrencies in the world. Bitcoins are a digital currency so can be used to buy things electronically (and in that sense are similar to conventional currency). However, Bitcoins most important characteristic is that it…

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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2