Tax Strategies

Tax Savings Strategy 220 | Non-Geared Unit Trust

19 March 2019

Non-geared unit trusts (NGUT) allow taxpayers to co-invest with their SMSF in property. The benefits of the NGUT structure include: Enables a SMSF with limited funds to co-invest in large property purchases. The SMSF can purchase additional units in the NGUT from related parties (at market value). The NGUT has flexibility in issuing and redeeming…

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Tax Savings Strategy 219 | Avoid the Luxury Car Tax

19 February 2019

The luxury car tax (LCT) is a tax on cars with a GST inclusive value above the LCT threshold ($66,331 as at 2018/19). LCT is imposed at the rate of 33% above the LCT threshold. LCT is paid by businesses that sell or import luxury cars, and individuals who import luxury cars. Taxpayers can avoid…

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Tax Savings Strategy 217 | 60% CGT Discount for Affordable Housing Investments

22 January 2019

From 1st January 2018, a 60% CGT discount applies for Australian resident individual’s investing in qualifying affordable housing. This also applies if the individual invests via a managed investment trust. The conditions to access the 60% discount are: The housing must be provided to low to moderate income tenants.  Rent must be charged at a…

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Tax Savings Strategy 215 – Super Contributions from Downsizing

22 November 2018

A person aged 65 or over can make a non-concessional contribution into superannuation of up to $300,000 from the proceeds of selling their principal residence (if they have owned it for at least 10 years). This is available to both members of a couple for the same home. This strategy is available from 1st July…

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Tax Savings Strategy 214 – First Home Saver Scheme

18 October 2018

From 1st July 2017, taxpayers can contribute up to $15,000 per year in voluntary contributions (up to $30,000 in total), that can be withdrawn for a first home deposit. The contributions must be made into their superannuation account and be within an individual’s existing contribution caps. The contributions and earnings are both taxed in the…

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Tax Savings Strategy 213 | Boats & Yachts

20 September 2018

This strategy involves using the entertainment facility leasing provisions of the FBT Act to make owning and operating a boat or yacht as tax effective as possible. To achieve this, it should be structured as follows: Individual owns the boat or yacht. Individual leases the boat to the business entity on an exclusive basis for…

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Tax Savings Strategy 209 | Excess Concessional Super Contributions

14 June 2018

This strategy involves employees with large employment income salary sacrificing part of their wages into excess concessional super contributions.  The tax consequences of this are: The employer receives a tax deduction for the total super contributions made. The excess super contributions are included in the employees individual assessable income and taxed at marginal rates. The…

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Tax Savings Strategy 207 | The Sole Trader Business Structure

16 May 2018

The sole trader business structure involves the individual personally operating their business.  The advantages of operating a business as a sole trader include: Simple and easy for clients to understand. Cheap to establish and dismantle (basically just need a business name, ABN, GST registration and business bank account). No extra tax return required to be…

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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"

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