Tax Effective Planning | AVS Advisors

Increasing Tax Effectiveness

When we present you with your financial strategy, you will know exactly what the possible tax savings will be. Each investment type and structure have an impact on your tax.

Ownership & Structure of Assets

Correct ownership of an asset can have a substantial impact on the tax treatment of an investment. We carefully consider which name or entity an asset should be held for both income and capital gains tax efficiencies.

Boosting your tax-deductible superannuation contributions, including salary sacrifice

Superannuation contributions generally attract taxation at 15%, whereas savings strategies outside the Superannuation environment could attract taxation as high as 49% (depending on your income). Utilizing your ability to make contributions is a powerful tax saver.

Making non-deductible contributions into super

You may be able to contribute up to $180,000 per annum (or $540,000 over a 3-year average) into superannuation. These contributions can boost your investments in a concessional tax environment now and in retirement. (Note that these figures are currently subject to review by the government and legislation can change from year to year)

Negative Gearing into Investment Property & Shares

Negative gearing is a high-profile tax planning strategy. There are many components that must be considered when considering such a strategy, including tax implications and expected growth rates. While it is possible that your expenses may be subsidized by tax savings, selecting the right investments for capital growth is key here.

Franked Share Dividends

In many cases, Australian companies pay tax on their profits before declaring a dividend to investors. Because company tax has already been paid on this income, the investor may have a reduced or nil rate of income tax to pay on the proceeds, and in some cases, a tax refund.