Plans with Tax Efficiencies
No one should have to pay more than their fair share of tax, and with our help you won’t need to. The best laid financial plans and investment returns can be blunted by wasting tax, so we work to build our strategies, structures and investment portfolios to deliver added tax efficiencies.
Empire have always exceeded my expectations with their knowledge, assistance and accessibility. It’s one less thing that we now need to worry about – our goals are now identified and addressed and the key is to focus on work and make sure that the right amount of money goes to the right places. All our plans have been based on very conservative investment return figures. Anything above that now becomes a bonus, not the key to success or otherwise.
– Brendan and Sharon Smith, Real Estate Representatives, LJ Hooker City Residential, East Perth
Increasing Tax Effectiveness
When we present you with your financial strategy, you will know exactly what the possible tax savings will be. Each investment type and structure has an impact on your tax.
Ownership & Structure of Assets
Correct ownership of an asset can have a substantial impact on the tax treatment of an investment. We carefully consider which name or entity an asset should be held for both income and capital gains tax efficiencies. Before committing to any future investments, your Empire team will answer any queries relating to assets.
Boosting your tax deductible superannuation contributions, including salary sacrifice
Superannuation contributions generally attract taxation at 15%, whereas savings strategies outside the Superannuation environment could attract taxation as high as 49% (depending on your income). Utilising your ability to make contributions is a powerful tax saver.
Making non-deductible contributions into super
You may be able to contribute up to $180,000 per annum (or $540,000 over a 3-year average) into superannuation. These contributions can boost your investments in a concessional tax environment now and in retirement. (Note that these figures are currently subject to review by the government and legislation can change from year to year)
Negative Gearing into Investment Property & Shares
Negative gearing is a high-profile tax planning strategy. There are many components that must be taken into account when considering such a strategy, including tax implications and expected growth rates. While it is possible that your expenses may be subsidised by tax savings, selecting the right investments for capital growth is key here.
Franked Share Dividends
In many cases, Australian companies pay tax on their profits before declaring a dividend to investors. Because company tax has already been paid on this income, the investor may have a reduced or nil rate of income tax to pay on the proceeds, and in some cases, a tax refund.