Treasurer Jim Chalmers handed down the 2026-27 Federal Budget last night and boy, this is a whopper! The Government has announced a fundamental restructuring of capital gains tax, negative gearing, and the taxation of discretionary trusts, alongside a permanent extension of the $20,000 instant asset write-off, modest personal income tax cuts, and a phased wind-back …
Paying tax is psychologically painful. Loss aversion means we experience losses about twice as strongly as equivalent gains, and this effect is amplified when we pay expenses. Governments are widely seen as wasteful with public money, and that perception is largely justified. Virtually every taxpayer shares the view that too much of what they contribute is squandered. No one enjoys handing it over. But …
If you are a PAYG employee, you probably feel like you are paying more than your fair share of tax, and you are not wrong! The system is not built in your favour. One of the most common questions we get from PAYG earners is: “What can I do to legally reduce the amount of tax I pay?” This blog answers that question. Why is the …
The Federal Treasurer, Jim Chalmers, has publicly acknowledged that both state and federal budgets are under unsustainable pressure. He’s been clear that achieving budget sustainability cannot be done without both raising taxes and cutting spending. Chalmers has also spoken about the need to reduce our reliance on income taxes. Australia absolutely needs tax reform – …
Tax season can be stressful, but a bit of smart planning can help you save significantly. Let’s walk through some essential tax planning tips and strategies for the financial year 2024/25, designed to help individuals and small businesses maximise their benefits and minimise their tax obligations. Understanding Tax Planning Tax planning involves arranging your financial …
Most investors tend to own property in their personal names. Regarding alternatives to personal name ownership, I have previously explained why I generally avoid using family trusts to own property – primarily due to higher land tax rates and the likelihood of not immediately benefiting from negative gearing. Additionally, last month, I discussed the potential …
Typically, accountants tend to advise against using a private company structure to hold geared property investments. However, investors shouldn’t automatically dismiss this approach, as it can provide substantial capital gains tax (CGT) savings. Commonly cited disadvantages of a company ownership structure There are two main disadvantages of using a company structure for property investment: Although …
Tonight, the Albanese government released its federal budget for the 2025/26 financial year. Assuming the government is re-elected before the end of May 2025, here’s my clear and concise breakdown of the key announcements: Income tax cuts From 1 July 2026, the income tax rate on earnings between $18,201 and $45,000 will reduce by 1%, …
Changing the ownership of a property is typically cost-prohibitive. This is mainly due to the potential stamp duty and capital gains tax liabilities that can arise. Therefore, it’s vital to carefully consider the ownership structure right from the start. Once you’ve made that decision, it is likely that you will have to live with the …
As we near the end of the financial year, it’s wise to reflect on how you can optimise your tax position for the 2023/24 financial year. Below, I’ve outlined the factors we typically consider when reviewing a client’s position. Firstly, estimate your tax position When undertaking tax planning, the initial step involves estimating your tax …
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