By always keeping your investment plans in mind, you can save on your taxes in many different ways. Futhermore, you need to ensure 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.
• Gearing can multiply your loss.
• Interest/fees on borrowing for investment purposes.

There are three main types of tax-effective investments:

• Retirement income stream 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.
• Superannuation - Taxed at 15% on investment returns, you can defer lump sum tax by rolling over eligible termination payments.
• Shares & Managed Investments - On franked dividends a credit is given for the company tax already paid. These credits are known as the imputation credits which can reduce your income tax.

A Wealthrite adviser can show you the best ways to save when it comes to your taxes depending on your personal needs and objectives. Contact us to arrange a free initial interview.