Strategic Tax Planning

You have the right to arrange your financial affairs to keep your tax to a minimum. This is often referred to as tax planning, or tax-effective investing.

Tax planning is legitimate when you do it within the intent of the law. However, tax minimisation schemes that are outside the spirit of the law may attract the attention of the ATO. These are referred to as tax avoidance schemes or arrangements.

A tax avoidance scheme involves the deliberate exploitation of our tax and superannuation systems. We take these schemes seriously, and will take action when they are not lawful.

Involvement in a tax avoidance scheme can risk your original investment. You might also have to pay back tax, with interest and penalties.

There are many different types of legal tax planning strategies available:-

Entity selection and re-structuring
Tax minimisation strategies
Strategies for obtaining tax deductions
Strategies for obtaining tax offsets (credits)
Strategies for moving income away from an entity paying a high rate of tax to an entity paying a lower rate of tax.
Strategies for moving profits and losses between tax years, either to defer tax or take advantage of a more favourable tax rate.
Strategies for reducing the amount of assessable capital gains from an investment sold at a profit.

Planning for deductions vs. planning for offsets

When a tax deduction is claimed for something, a tax benefit is received equal to the amount of tax you would have paid on that income at your marginal tax rate. For example, if you are on the top marginal tax rate of 47% (including Medicare and Budget Repair Levies), claiming a $100 Tax deduction will result in a tax benefit of $47.00 (i.e. your tax bill is reduced by $47.00)

An offset on the other hand is a credit against tax payable. For example, If you are entitled to a $100 tax offset, your total tax bill will be reduced by the full $100 however, if your income is below the tax threshold and there is no tax to pay, you do not get a refund of the $100 tax offset, it is lost in that year.

No one likes to pay more tax than they need to. Using the appropriate legal tax planning strategies can result in significant tax savings. We at Carmelo Mirabile & Co share that opinion and with forward planning strategies, tailored to our client’s individual circumstances, we seek to place our clients in the most tax effective position.

Call us and let us see what we can do for you. Let us add real value to your business.

Taxation Services

Income Tax Returns

No return is too big or too small – we apply the same level of diligence and care to all our clients without exception. We cover individual, trust & partnership, company, back year and superannuation returns.

Goods & Services Tax (GST)

Let us take into account your individual or business circumstances and help you navigate whether or not you need to be registered for GST, as well as ensuring your Business Activity Statement (BAS) is sorted.

Capital Gains Tax (CGT)

Under the Australian taxation system capital gains tax (CGT) applies to the capital gain made on any asset disposal, except for specific exemptions. Let us advise you on your tax requirements for CGT.

Fringe Benefits Tax (FBT)

Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided.

We can assist with all your FBT needs.

Negative vs. Positive Gearing

If you are interested in negative gearing we are able to assess your circumstances and assist you with your requirements.
Negative gearing does not suit all investors; let us help you in your decision.