Tax Planning

Commonwealth Stimulus, Phase Two

Last week, we discussed the stimulus package that had been announced but not yet passed through Parliament. As we forecast, the Commonwealth Government then announced a second round of stimulus measures. Both packages were passed by Federal Parliament earlier this week.

A Time for Stimulation

Next week, the Commonwealth Parliament is expected to pass an emergency $17.6 billion stimulus package. The package is designed to boost the Australian economy – a boost that is needed due to the current and expected future impact of the Coronavirus. This article discusses the stimulus package.

Why is Capital Gains Tax the ‘Happy Tax’?

What would you think if we told you that there is a special type of tax that people are always happy to pay? Would you think we had dropped the ball? You shouldn’t. Read on…

Franking credits

The franking credit system is necessarily complex. But the idea underlying it is quite a simple one. A company’s profits are taxed at the applicable tax rate of each of its shareholders. This article explains exactly how.

Extra help when a child is disabled

Disabled children are treated as adults for tax purposes even if under age 18. This means that they can receive distributions of net income from family trusts and hybrid trusts. This income is taxed normally, rather than under the penalty tax arrangements that usually apply to the unearned income of minors. It can mean that the family pays much less tax.

Splitting super contributions between you and your spouse.

'Super splitting' is not just a term for managing super when a couple separates. Couples who remain together can also split super between themselves. This opens up a raft of planning opportunities, which we explore in this week's article.

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.