All Topics / Help Needed! / ways to minimise personal income tax

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  • Profile photo of asouasou
    Participant
    @asou
    Join Date: 2015
    Post Count: 23

    If I am on a high income tax bracket (40%), is there any other ways to reduce my tax significantly except for buying negative gearing properties?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The only way to pay less tax is to have a lower taxable income.

    2 ways to have a lower income are
    1. earn less or
    2. claim more deductions

    Earning less could be
    1. working work
    2. spending on things that are deductible
    3. salary sacrificing into super

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Property related ways – depreciation. Making a loss just from interest/expenses just to get a deduction is a mugs game.

    In saying that, buying just for depreciation isn’t that a smart an idea either!

    Your earning potential is unlimited, whereas your saving ability is limited.

    • This reply was modified 9 years, 6 months ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of asouasou
    Participant
    @asou
    Join Date: 2015
    Post Count: 23

    Hi Corey,

    I was thinking exactly the same thing. I don’t want to buy negative gearing properties, I also don’t want to buy off the plan just for depreciation. Salary sacrificing into super isn’t good cos I don’t get the money until 65. There is really no way to get any tax advantage as an employee. This is exactly what Robert Kiyosaki explains in the cash flow quadrant. Only business and Investment/Real Estate can get tax advantages.

    Profile photo of Lloyd James RossLloyd James Ross
    Participant
    @lloydjamesross4
    Join Date: 2015
    Post Count: 5

    Don’t always be in a hurry to save tax. Many people don’t realise that to save 33% you have to spend 66% so strategies purely geared around saving tax are always floored. Tax deductions are merely a way to incentivise business spending and investment, which includes property investment.

    The benefit of securing a tax saving through depreciation and negative gearing is to assist with covering the operating costs of a property while the investor waits for capital growth to occur.

    With interest rates being so low at the moment, tax savings secured from non-cash charges like depreciation create a neutral and often positive-cashflow property. This allows for sensible cash flow mgmt until capital growth occurs.

    Lloyd James Ross | RPM Queensland
    http://www.rpmqueensland.com.au
    Email Me

    11 Facts You Need To Know About Property Investing

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