There is no respite from tax if you are a salaried person. However, there is no reason to over pay. You just need to know the nitty-gritties of tax policies and find out effective strategies that would help you save considerably on tax. Through proper investment activities, you can easily minimize your tax liabilities. Approaching professional accountants Sydney will help you get guidance regarding how to save on tax.
Read below to get some useful tips on how to save on tax in Australia.
l Mortgage Offset Account:
Suppose you have acquired some cash through the sale of assets but you are not sure about what should be done with the proceeds. If you have acquired a house loan, you can consider putting this additional cash into an offset account as it will bring down the amount of payable interest on the loan, and at the same time will prevent you to pay tax on the interest you would have earned otherwise.
l Transition to Retirement Policy:
The government of Australia allows you to withdraw some of your super benefits while you are still working. The policy referred to as ‘transition to retirement’ enables you to supplement your earning and maintain a comfy lifestyle. This policy can be used for saving tax and boosting your super prior to your retirement.
l Contributing Extra to Super:
Super contributions can be an effective way to save on tax. Super can be built by making after-tax contributions from your own money. This can also be achieved through salary sacrificing.
Salary sacrificing is redirecting a part of your salary to super as a contribution. By redirecting some of your before-tax earning to the super fund, you will be taxed at the rate of 15%. It is called concessional contribution as there are no concessions in these sorts of contributions.
Following the aforementioned tips may help you save on tax to a great extent.