• FWX March qtr  -1.6% (72.2pts)
  • FWX y-o-y change  0.9% (72.2pts)
  • Total timeframe to Gender Equality  59
  • Timeframe to Equality on Employment  28 years
  • Timeframe to Equality on Underemployment  15.5 years
  • Timeframe to Equality on Gender Pay Gap  22 years
  • Timeframe to Equality on Unpaid Work  59 years
  • Timeframe to Equality for Women On Boards  6.5 years
  • Timeframe to Equality on Superannuation  19 years
  • Gender Pay Gap 2021  13.9%
  • Gender Pay Gap sub-index 2021  (86pts)
  • Employment sub-index 2021  1.2pts (72pts)
  • Superannuation sub-index  5.4pts (74.6pts)
  • Gender Gap Superannuation  25%
  • Underemployment Rate sub-index  -8.1pts (74.6pts)
  • Education sub-index  92pts
  • ASX 200 Women On Boards sub-index  69pts
  • ASX 200 Women On Boards  34.5%
  • Unpaid Work sub-index  67pts

Use paying tax to your advantage

australian tax system
Susan Wahhab
September 28, 2017

Paying tax is a burden we grudgingly bear, but what if you could harness the tax system for your financial benefit?

The good news is, you can.

Australia’s tax system is set up with the investor in mind. How cool is that?!

Most people don’t realise this. The government wants you to succeed.

It wants you to invest and future proof your financial position.

That’s one less person needing the age pension!

Paying tax is a fact of life.

So why not make the most of the tax system to invest and build your wealth?

Take a long-term view of your tax strategy

A solid tax strategy helps you minimise the amount of tax you pay so you can put more money into your nest egg.

For a tax strategy to work, it needs time and commitment.

Good things don’t happen overnight.

You must take a long-term approach to your tax strategy, just as you would with your savings strategy.

There are many tax strategies and opportunities available to you.

What you choose to take advantage of depends on your unique situation and you should consult and accountant/ tax/ financial advisor for advice.

Tax strategies include:

Superannuation strategies:

By salary sacrificing extra super out of your wages, you achieve two objectives, first you reduce the income tax you pay on the wages and you increase the balance in your super fund for future retirement plans.

Investment property strategies:

Under your name/unit trust negative, positive and neutral gearing.

Or, investment property strategies (commercial, residential, car parks and rural land) in your self-managed super fund (SMSF).

Share investment strategies:

Invest in Australian shares/managed funds to take advantage of imputation credits under your name, in the family trust or in a SMSF.

Get the tax structure right

To reduce the amount of tax you pay and protect your assets, it’s important you take advantage of tax-effective asset ownership structures.

An asset ownership structure refers to the way your investments are legally owned.

It should reflect your family business structure (if applicable), your partner’s income and the level of asset protection you need.

Common asset ownership structures include:

Property unit trust to protect assets and take advantage of claiming the interest on property loans.

Company as corporate trustee or as a “bucket company”. A company structure is used more for business rather than investments.

Self-managed super fund to build long-term wealth for the sole purpose of retirement.

Family trust to protect family assets, manage tax and keep the family’s wealth in trust for all members of the family.

Don’t bury your head in the sand when it comes to tax.

By taking control and creating an effective tax strategy, you can save money, build your assets, and be well on the way to achieving financial liberation.

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Susan Wahhab
September 28, 2017
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