You can save on your taxes in many different ways, just remember to always keep your investment plans in mind. Make sure you give yourself a lot of time to review everything before tax time.
Some ways to save on your taxes are:
- Contribute as much as you can to your superannuation
- Take as many deductions as you are legally able
- Look into tax effective investments.
Some deductions that may be available are:
- Self-employed superannuation contributions up to your maximum deductible
- Contributions
- Income protection premiums
- Deductible amount for pensions/annuities
- Interest/fees on borrowing for investment purposes
There are three main types of tax-effective investments:
Any fund earnings are tax-free and you can defer lump sum tax on eligible termination payments. Income payments are taxed at marginal tax rates (Personal income tax rates), however a 15% tax rebate may be claimable and a tax-free amount available. For example; Allocated pensions and annuities.
2. Superannuation
Taxed at 15% on investment returns. You can defer lump sum tax by rolling over eligible termination payments.
On franked dividends a credit is given for the company tax already paid. These credits, known as the imputation credits, can reduce your income tax.
