As the old saying goes, “In this world nothing can be said to be certain, except death and taxes.”
However, no one ever said tax couldn’t be reduced.
The implementation of effective tax strategies is an integral part of the financial planning process. Structuring the way in which you receive your salary, superannuation contributions, investments, insurance policies and debts can significantly minimise your tax implications and are an essential component of your wealth creation and retirement strategy.
Strategy is simply doing things smartly. Simple things like considering who should own an investment; individually, jointly, company, trusts or superannuation can make a big difference, not only during the investment but importantly when you come to sell.
It is important when developing a taxation strategy not to get caught up with doing something simply for a “tax deduction”. There are many good investments that provide tax benefits and when these are integrated into your overall financial plan you can gain maximum benefits.
The collaborative relationship between adviser and accountant is the key to ensure successful implementation of recommendations.