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:
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:
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.