Top 6 2012 Smart Tax Savings Tips for Australians


The devastating state of the financial system affects many countries. Though it would be exemplary to solve all these circumstances across the Globe, Australia is the country in the spotlight today.  This piece of writing contributes tax savings advice for Australians. These tax saving strategies generate quality gains, because one will be able to boost retirement planning. Primarily, the tips are exceptional for savvy savers living in Australia.

1.      Making a Super Tax Deductible Contribution

It is imperative that people develop smart strategies to save on taxes. Specifically for the self-employed and unemployed citizens of Australia, considering superannuation, a retirement planning strategy is an excellent resolve to reduce the annual income tax contributions. In the end, one can claim the contributions, as a form of tax deduction.

2.      Bonus/Salary Tax Reduction

There are different ways to lower the payable tax amount on the payroll. The Australian citizens, employed to a company are better off sacrificing the bonus or pre-tax wages to the superannuation plan, instead of accepting cash. Essentially, this is an operative method to decrease the salary taxes up to approximately 31.5%.

3.      Spousal Superannuation increase and Tax Reduction Planning

The options to improve the superannuation contributions and depreciate the income taxes for spouses generate remarkable returns. In particular, the system has in circulation a policy that enables spouses earning under $13, 800 per year to qualify for after tax contribution assistance, enabling a partner to make contributions on behalf of the person. Fundamentally, this is retirement planning approach that boosts the savings, allowing the participant to receive deductions up to an estimated $540 off the taxes.

4.      Reducing Investment Earnings Tax

For investors in the Australian financial market, lowering the taxes on investment earnings is a straightforward process that can stream tax savings. Accomplishing valuable returns is not a demanding ambition, because it is possible to cash out the profits as superannuation after tax contributions. This is only applicable for personal investment account registration, namely to the superannuation account owner. Ultimately, this significantly reduces the tax deductibles up to about 31.5%, while increasing the retirement savings.

5.      Asset Sales Deferment planning to save taxes

When marketing assets to achieve profitable gains, it is rational to consider selling the item at the closing of the fiscal year to delay the payment of the C.G.T. (Capital Gains Tax). This enables an individual to have control over the tax deductibles, which will not become due until the next fiscal year. The approach is quite rewarding in the end, and strategically improves one’s tax management abilities.

6.      Tax Reduction Loan Prepayment Strategy

It is wise to submit investment loan payments in a timely manner. As such, making prepayments is an elementary approach to reduce the tax applied for interest; thus reducing the overall repayment amount. Primarily, the method works well, because one will garner agreeable savings.

Tax Returns

In some cases, some loans allow interest deductions from your taxes. These generally include mortgages, home equity loans and student loans. Unfortunately, personal cash loans and caveat loans do not affect your tax returns.

In order to get more advice on smart tax savings tips, it is wise to seek help from expert financial advisers. The fundamental requirement to gain acceptable results is to take heed to forecasts about the Australian economics. Additionally, it is vital to commit to the concepts of maintaining efficient money management skills. In developing efficiency in this area, while retaining a positive attitude towards gaining accomplishments, the outcomes will be quite beneficial.


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