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Tax Savings Tips and Boosting Superannuation

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9 yrs ago

Anyone got any tax avoidance tips they would like to share

I have just discovered a few gems

 

1. If you are a non resident of Australia for tax purposes but are earning income dervied from Australian assets, you can avoid the 32.5% non resident tax, by salary sacrificing your taxable earnings. You will be chrged the concessional rate of 15%. Non residents do not enjoy any tax free threshold, so this is an excellent way to avoid paying the full tax

http://www.citibank.com.au/citigold/pdf/Your_guide_to_super_smart_strategies.pdf

2. Capital gains Tax. If you have investment property you can minimize tax be salary sacrificing your CGT. Property held for more than 1 year only attracts CGT on 50% of the gain. Salary sacrificing the CGT helps you reduce the marginal rate of tax

http://www.superguide.com.au/boost-your-superannuation/reducing-tax-via-super-contributions

 

If you have any other tax avoidance gems, please share

4 comments
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Abby
9 yrs ago

An excellent topic to start seeing the Tax return is due on the 30th of this month.

My tip is very basic and not quite avoidance - keep all your dockets and sort them out monthly - makes it a lot easier job at the end of the year.

in regard to Capital gains tax it was introduced in Australia on 20 September 1985, one of a number of tax reforms by the Hawke/Keating government. The tax applies only to assets acquired on or after that date. Gains (or losses) on earlier assets, called pre-CGT assets are ignored.

Also some go and live in their investment property for a number of years and then sell it as their residence on which capital gain is hot payable

How legal that is I do not know .... Wish Cuddles was here ...she would have all the latest info on the subject.

I said avoidance Abby, not evasion.

So any LEGAL loopholes are welcome.

I like the making an investment property your PPOR before selling idea, especially when market is red hot, but I think any gains before it was your principal residence may still be subject to tax.

yes - wish cuddles would come back .

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Abby
9 yrs ago

If you have not already looked at this link, you may find it of use

https://www.ato.gov.au/General/Capital-gains-tax/CGT-exemptions,-rollovers-and-concessions/Exemptions/

This page may also be of help that covers conditions required so that the property can be claimed as  dwelling. full and partial exemptions and your partner having a separate home etc

https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Selling-your-home/

Thanks Abby

 

This one is a gem:

travel expenses (i.e. air tickets, accommodations etc. to Australia for inspection of the property etc.) 

 

http://ascendpoint.com.au/publications/reducing-your-australian-income-tax 

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Abby
9 yrs ago

There was some chat on the main Forum back in june  - see link

Wealthy outsmarting the ATO

there is  apost from Cuddles there :)

Cuddles
12th Jun 2014
3:12pm

"Mick, there are restrictions on how much can be "squirrelled" away into super and get the 15% tax concession. This is $35k pa for anyone over 60 this fiancial year and anyone over age 50 after 1 July 2014. This amount also includes SG, so the SG plus additional salary sacrifice contributions can not exceed $35K or they are hit with the excess contributions tax. Most in the "rich" can not contribute any additional contributions (to get the 15% tax concession) as their SG is too high."

A squiz through the article can be interesting of thoughts on the matter.

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Sandi (SA)
9 yrs ago

Knew the one about airline tickets Sol.  Claimed every year for my daughter to fly here from New Zealand and also when she lived in Sydney to check her rental property in Adelaide.

Hope there are a few tips I can pick up too.  Will check those sites out too Abby just in case there's something I can use.

4 comments



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