Investment Planning
Working with hundred of Individuals & business around the country
Some of the ways to facilitate tax minimisation on investments include negative gearing investment property, making superannuation salary sacrifice contributions and claiming deductions relating directly to investment income.
- Salary sacrificed superannuation contributions
- Comprehensive Investment Plans
- Negative geared property
- Investment Bonds
Investment structures and investment strategies – what are they?
Structure: An investment’s structure refers to its legal ownership. Examples of this include individual asset ownership, partnerships, trusts (including superannuation funds), and companies.
Different types of legal structures can offer different advantages. For instance, investing in superannuation offers a reduced tax rate, while a family trust allows income splitting between members, and a company incurs a flat tax rate (currently 30%).
Strategy: An investment strategy is really what you do with your investments in order to get the best outcomes. For example, you might choose to invest in property where you are the owner (that’s the structure bit) for the purpose of reducing tax through negative gearing while growing your wealth in the longer term (the strategy part).
hen it comes to tax, all investments are not equal – and savvy investors will seek to invest in a way that optimises their after-tax returns when 30 June rolls around.
This is either done through the structure of your investment, your investment strategy, or both.
The holding structure of an investment refers to how investments are legally owned. ie. do you own the investment as an individual, with another person, or is the investment owned by a company or trust? Depending on how you structure your investments (ie a discretionary family trust could allow you share income with all your family members) you can reduce your individual tax burden.
The investment strategy refers to the actions you take with your investments to get the outcomes you want. For example, you might choose to buy a property that you can negatively gear. Or you might buy shares or ETFs to invest in over the long-term and take advantage of franked dividends each year.
Watch Chris’s video below tax efficient investments, and then keep reading to find out ways you can grow your wealth in a tax-conscious way. We discuss superannuation salary sacrificed contributions, negatively gearing investment property, and claiming deductions related directly to investment income.
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https://www.taxeffective.com.au/insights/blog/investing-minimising-tax