Tax Planning | Edgeworth Partners

Personal super contributions – let’s hear it for the Tax Office!

As of 2017, almost all working Australians can make a personal superannuation contribution for which they claim a tax deduction. For most people, this provides an immediate positive return on their investment. This article explains how to make the most of personal superannuation contributions.

What kind of return is better: cash or capital growth?

Investment returns come in one of two forms. Different forms of investment return suit different investors. This article will help you decide which form of investment return you should be targeting.

Negative Gearing and Shares

When most people think of negative gearing, they think of property. But negative gearing can occur with any asset for which some or all of the purchase price is borrowed. This article provides a worked example of negative gearing using an Exchange Traded Fund (ETF) to buy a diversified portfolio of shares.

Repaying deductible debt? Here’s a better idea.

If the interest on your debt is deductible, then repaying the debt might not be a very good move. Often, there is a much better use for your money.

Not all debts are the same. Even if the interest rate is.

Did you know that two loans that look identical can have a radically different impact on your financial management? The difference lies in whether interest on a loan is deductible or not.

What makes debt deductible?

There is a big difference between the economic impact of deductible debt and non-deductible debt. This article examines how you can decide whether interest is deductible or not.

There’s no need to salary sacrifice any more…

Until now, salary sacrifice has been one of the only ways that an employee can make an extra tax-advantaged contribution into their super fund. But that changed on 1 July 2017. Now, almost everyone can make additional contributions without their employer even knowing – which might come in handy next time you ask for a pay rise!

2017 Budget – Winners and Losers

Compared to previous years, the 2017 Budget was a bit of an anti-climax. In previous years, there have been a number of big-ticket changes - such as the big changes to superannuation that we have been discussing in recent articles. But this year there have simply been a whole lot of small changes, some of which will be of benefit and others will represent a small loss.

Borrowing to pay super contributions

Super contributions are a legitimate expense of a business. As long as the business uses a company structure, it can even borrow to make contributions on behalf of all of the staff – including the company directors. This can create a nice little tax saving that might not otherwise be possible.

Tax deductible debt

Did you know you can pay the same rate of interest to a bank – but that the actual cost to you of that debt will differ depending on whether the interest is deductible or not? This makes managing debts for tax effectiveness one of the most useful things any business owner or investor can do. This is a simple idea but it is important that you get the detail right. So, please read on and don’t hesitate to contact us if you would like to hear how you can take advantage of this simple mathematical truth.