Investing in Shares or Managed Funds can be a very successful way to build your wealth and/or reduce your tax, but it is important to get the right advice before you buy or borrow funds to invest.
By structuring your investments in the right way, you can stream income in the most beneficial way for your circumstances, while minimising your tax. It is crucial to buy the Shares and Managed Funds in the right person’s name or as a structured entity to make the most of the opportunities on offer.
If you invest in shares that have tax credits, who do you want them to go to? Do you reinvest them in more shares? The answer at first may seem obvious to you, but after a discussion with one of our accountants explaining the implications, you may change your mind.
Tax Deductions - Loans
You have the option of taking out a loan for the purchase of your investments, and interest on the loan is tax deductible.
ATO Helps Out
Having a loan for your investments can reduce your taxable income and your tax payable accordingly. Depending on how investments are structured, you may receive a significant tax reduction through your PAYG. We can lodge a Pay As You Go Income Tax Withholding Variation (PAYGITWV) application to see a reduction of tax taken from your pay rather than waiting until lodging your tax return to get your refund.
Before embarking on the journey to invest in Shares and Managed funds, it is imperative to get good advice. Financial Planners make it their business to know what to invest in and how to do it.
Red Diamond Financial Group can help you to get the right loan for your individual needs. Lending services are referred to Andrews Finance Pty Ltd ABN 42 122 106 174 Australian Credit Licence No. 406968.