There are many perfectly legal and socially acceptable ways to increase your wealth in a tax efficient manner. Some of these methods are very powerful. Legitimate methods of increasing your tax efficiency are called “tax planning”.

Tax planning strategies can be classified as –

  • 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.

Financial planner at Provida can help assess your needs, explain suitable investments and develop appropriate strategies.