sensible ways to reduce tax?

Other than Super contribution & IP depreciation, what are the other sensible ways to reduce tax for a double high wage family?

 

Donations to charitable organisations
Salary sacrificing (car, lurks, perks)

@devank - does your parole come up in 2030?

 

What about all the legit tax schemes eg film industry donations and macadamia farms? They're still legit aren't they? I'll google them to find out when I'm on a high salary.

 

Haha... Kinda... last kid will be 18.

That's what I thought

Not really. I was trying to see if there are any legal ways which are not obvious.

 

Earn less?

See all of my tax tips. You basically have to maximise deductions and there are hundreds of ways to do this from claiming everything you can do structuring tax effective ownership set ups and funding structure.

 

PAYE? very little of any significance - you're bearing the brunt of the country's tax burden. Perhaps look at whether you can do what you do as a business.

 

Neg gearing
Salary sacrifice
Additional Super
Investing is self education (often ignored !!)
Self ed
Deferral of tax
Its a damn long list

Can I suggest my No#1 tip. Engage a tax adviser who thinks what helps you. Its deductible and personal

 

Spending money to save tax which is less than 50% is like burning cash so you dont pay tax

 

Burning cash is NOT deductible unless the taxpayer does thsi as a part of their businessie as a promo

 

In this case... use discretionary trusts for your cash flowing investments... distribute the income to your kids on a lower income...

 

Part IVA (anti-avoidance rule) may well apply to such a situation.

 

So, it seems that high wealth individuals, CEOs etc pay their fair share of tax?

I think the govt should abolish the secrecy provisions in the tax act ( for high earners) and lay bare these individuals' tax returns for the world to see.

You could probably make some kind of reality TV show out of it......."oh, Mr Sukboom, CEO of xyz bank, you have a gross salary of $10m pa and yet you get a tax refund of $1m every year?......lets see what's going on here.... We'll be right back after the break".

 

...and the problem is??? Mr Sukboom is very happy but we're not here to make people happy.

Set up a charitable foundation, distribute 35% of all income to various causes, get a heap of tax concessions, FBT discounts... everyone wins, even Mr Sukboom. (Warnie forgot to distribute enough of the income apparently).

 

And then use the charity as your personal credit card. Fly yourself around the world for fundraising and to see little children starving - fly first class and stay in 5 star hotels at the charty's expense. Its all ok as long as 30% goes to the cause.

 

I would setup a church. My revered God is Srekcus ...Bow down all and worship. The holy season of festivus is coming. My aim is to outdo those people who knock on doors in black suits & ties riding bikes with backpacks....I think they are called morons. My competition !! And they arent even aussies....All of whom bypass the 457 visa.

Charitable foundations dont even get close to the stuff churches get away with. Charitable foundations have to compete to get funds and are regulated in what they spend people tith and throw money at Churches. Churches dont even need to do accounting and certainly arent regulated to produce reports and provide them to the public or any government !!! There is all but zero regulation for churches. No ASIC, No Charitable Agencies, No State law, No nothing......Even the ATO leave them alone. They also get land tax and other concessions.

Reverend Paul

 

No stamp duty either. You could live in the property - probably even get a grant to buy it. I don't think they pay any tax what so ever.

It is just wrong.

 

There is rising tide of competitors out there on bikes - Foodora, Deliveroo & Dominos (also in black). I don't know how charitable they are but always expect a tithing of 10% for what they deliver.

 

Ask the Fair Work Commission what a $5 pizza has cost the employees (sorry contractors)...

Or as my wife put it...If some franchises and stores are happy to underpay workers and skip entitlements etc - Do you think the meat is fresh and real ?