Control, Alt + Delete

Written on the 13 April 2015

What does the word control conjure up in your mind?

Immediately for me I think of the control key on a computer keyboard; for my husband it's the TV remote control.

When I Googled the word, Wikipedia alone came up with over 2 dozen Control definitions and explanations. (Sometimes I wonder why non English speaking people struggle with our language.)

Among those definitions/explanations, the ones listed under Finance were:

  • Control (management), an element of management
  • Control freak, a person who attempts to dictate how everything around them is done
  • An element of management accounting
  • Internal control, a process implemented in an organisation to help in achieving specific goals
  • Comptroller (or controller), a senior financial officer in an organisation
  • Foreign exchange controls, regulations on trade

The top 4 of these definitions resonated with me. (Especially Control Freak loved seeing that in a dictionary). Tax Control came to my mind recently when getting all of my papers and reports ready for my Accountant to prepare our tax returns. Tax under Control or out of control is often bandied about in general conversations.

Most of us are looking to pay as little tax as possible and begrudge it when we see our Group Certificate or Tax Assessment with the amount of tax paid or due from earnings listed. No one likes paying tax but everyone must do their bit so we can continue to enjoy the lifestyle we are accustomed to.

If there are ways to legally minimise tax, why not take advantage of them.

Two options that immediately come to mind are:

  1. Salary Sacrifice into Super.
  2. Negative gearing.

Both of these options help us accumulate passive assets and at the same time reduce our taxable income therefore reduce our tax.

If we can accumulate sufficient assets within superannuation and eventually convert into a pension plan*, (not to be confused with the Age, Disability, Widows or any other Government pension) we can ensure that we never have to pay out of control tax in retirement. (* under Current Australian Legislation.)

Contact us today to discuss your options further.

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
Whilst Arrow Focus on Wealth Pty Ltd is of the view the contents of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed and no warranty of accuracy or reliability is given or implied and no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Arrow Focus on Wealth Pty Ltd or GPS Wealth Ltd or any officer, agent or employee of Arrow Focus on Wealth Pty Ltd or GPS Wealth Ltd.

GPS Wealth Ltd Head Office Level 15,115 Pitt Street ,Sydney. NSW 2000 Tel: (02)8074 8599

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