Interest cost deductibility

Interest cost deductibility saves tax, lessens borrowing costs Interest cost deductibility is one of the factors considered in making a decision as to whether to gear an investment. Gearing is a popular strategy used by many Australians to improve their wealth. Popular investment assets acquired in a geared portfolio include rental property (residential, commercial, industrial etc), shares and managed funds. The cost of borrowing for an asset/ portfolio that is income producing, is significantly less [...]

Tax refund wisdom

Tax refund wisdom enhances wealth management Tax refund wisdom is exercised when you use your refund effectively and in recognition of how your taxable income has been calculated - and hopefully, strategically - and you recognise that it isn’t a gift from the ATO (or from the government)! It ensures that the refund isn't 'wasted' on discretionary spending, rather sees it used to enhance the attainment of financial goals. You [...]

By |2021-01-18T12:02:41+10:00July 16, 2013|Investment Strategies, Wealth Management|1 Comment

Bad Debt made Good

Why do we want Bad Debt made Good? Bad debt made good results in tax-effective funding and more effective wealth accumulation. Making bad debt good, is to move the debt from assets that are not income producing to assets that are - and the interest on the debt becoming tax deductible (if correctly managed). What is 'bad debt'? Any debt that has to be repaid from after-tax money is called [...]

By |2021-03-16T16:03:19+10:00April 16, 2013|Investment Strategies, Wealth Management|0 Comments

Financial Year end planning 2011

Financial year end planning 2011, like financial years in the past, is important to ensure the financial stage is set for for the future - and financial goals and objectives appropriately set in train. The effectiveness of some of the strategies mentioned below will depend on your personal taxation circumstances: whether an employee, a sub-contractor or a self-employed business operator (carrying on business under a structure): you need to confirm [...]

By |2018-01-04T11:37:04+10:00June 8, 2011|Tax, Wealth Management|0 Comments

Negative Gearing

What is negative gearing? Negative gearing occurs when the expenses associated with an investment, including interest on the money borrowed, are greater than the income derived from the investment. [Gearing itself simply refers to the act of borrowing money to invest.] Typical investment assets subject to negative gearing arrangements, are property (particularly rental property); and share portfolios. Satisfying this test means that you are making an income loss on the investment: [...]

By |2017-07-31T14:48:34+10:00January 14, 2010|Investment Strategies, Wealth Management|0 Comments
Go to Top