Tax Planning
Tax planning means managing your financial affairs such that the amount of tax you pay is minimised as much as legally possible. The idea is that you pay all the tax you have to – but no more.
Optimising your tax planning unlocks enormous potential for your financial plan. In fact, getting the tax planning right is typically more important to your financial performance than just about any other aspect – including things like choosing the right investment. A good investment can become a bad one if you find yourself with a bigger tax bill than you needed.
Australia’s taxation system is deliberately designed to encourage people to do some things and not do others. This means that when we take advantage of quality tax planning we are actually doing exactly what the community wants us to do.
That said, it can be difficult to know exactly what the community wants you to do! Australia’s taxation rules are complex – in fact, according to the government itself, each Australian faces a potential 125 taxes that they are liable to pay.
This makes it imperative that you seek qualified, quality tax advice provided by someone who is legally allowed to provide it.
Paul Birch
Financial Planner
Paul has been working as a financial planner since 1999 and is passionate about helping people live a better quality of life through good financial planning.
Money is important to everyone and being financially secure can have a huge impact on your overall well being and happiness. We all strive for wealth and financial independence yet only 1 in 10 Australians ever achieve this. My goal is to help you make smart choices with your money to help you achieve those things that are important to you so you can spend more time living your ideal life.
Outside of work, Paul enjoys time with his family, travel and anything associated with health and fitness.
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Relevant Articles...
Why is Capital Gains Tax the ‘Happy Tax’?
What would you think if we told you that there is a special type of tax that people are always happy to pay? Would you think we had dropped the ball? You shouldn’t. Read on…
Franking credits
The franking credit system is necessarily complex. But the idea underlying it is quite a simple one. A company’s profits are taxed at the applicable tax rate of each of its shareholders. This article explains exactly how.
Extra help when a child is disabled
Disabled children are treated as adults for tax purposes even if under age 18. This means that they can receive distributions of net income from family trusts and hybrid trusts. This income is taxed normally, rather than under the penalty tax arrangements that usually apply to the unearned income of minors. It can mean that the family pays much less tax.
Splitting super contributions between you and your spouse.
'Super splitting' is not just a term for managing super when a couple separates. Couples who remain together can also split super between themselves. This opens up a raft of planning opportunities, which we explore in this week's article.