Salary sacrificing

While many employees can sacrifice salary in exchange for most work-related purchases, it is essential that employers are aware of FBT when working out the expense that will replace the income in a salary sacrifice arrangement. Employees should also be wary that if their employer has to pay FBT, that cost will most likely be…

Reducing tax in your SMSF

There are some effective, and often quite simple, strategies to reduce the tax payable in an SMSF that many fail to take advantage of. Nomination of beneficiary Those who nominate a spouse, child or financial dependent as a beneficiary may avoid paying tax on a lump sum death benefit. Delaying TTR commencement Members looking to…

Using the CGT discount

A capital gain is a profit made from the sale of an asset. Your capital gain is calculated as the difference between what you paid for the asset and what you eventually sold it for. A capital gain is considered by the ATO as part of your assessable income and is taxed at your marginal…

Diversified growth strategies

Australians looking to increase their super fund’s annual returns may benefit from shifting to a diversified growth strategy. A diversified growth strategy is a multi-asset program that invests in a range of traditional and non-traditional return sources to achieve a defined outcome. A recent study has shown that including a 15% allocation to a diversified…

Negative gearing for property investors

Whether you’re an established property investor or contemplating purchasing your first investment property, you may care to familiarise yourself with the way that negative gearing works. A property is considered to be negatively geared if the owner has taken on debt in order to acquire it and the net rental income is less than the…

Transitioning to retirement pension in an SMSF

The transition to retirement income pension is quite straight forward, however whether there are clear benefits depends on an individual’s personal circumstances. When an individual starts the transition to retirement income pension (TRIP) once they reach preservation age and are still working, they receive an income stream from their SMSF. Their existing account balance in…

Family trusts

While the ATO continues to crack down on its tax minimisation strategies, quite a few legal pathways to paying less tax while preserving wealth for retirement or estate planning purposes still exist. Family trusts have significant tax-saving abilities, and can save high-income earners a fair amount of money over a few years by apportioning wealth…