"Am I Paying Too Much Tax?" is a common and valid question in the market. Partners and directors of professional services firms (including law firms, financial services, IT, HR and management consultancies) need to regularly assess their taxable situation and generate tax efficiencies wherever possible.
For our clients we would typically seek to generate tax efficiencies by analysing:
- Your tax rate
- The tax situation of your spouse (especially if they do not work)
- If your children are under or over 18 years of age
- Your family income structure
- Where gearing is applied and if it is applied to the right assets*
- Your superannuation, if it is being used correctly, salary sacrificing and spouse splitting
- Insurance premiums in relation to your family structure and how / where they are being paid
- How FBT is being used and the efficiency of GST, payroll tax and the payment of dividends
* Often, clients are focused on negative gearing to create tax efficiencies. However, the trade-off for negative gearing is less robust asset protection.
Tax tips for success
Looking at assets in isolation and not understanding the impact on the whole family group can result in greater costs down the track.
Trading a quick tax deduction for long term inflexibility can be avoided by constructing a lifestyle plan which documents what type of assets should be matched with the individuals / entities contained in the family group.
Talk to Archer Gowland for a thorough review of your situation to identify opportunities for tax efficiencies.
Want more information on how your can increase your wealth and protect your assets?
Instantly download the FREE Archer Gowland Guide (below) "Wealth Creation to Fund Your Ideal Lifestyle - A FREE Guide for Partners of Professional Services Firms". We provide an indication of how much you will need at retirement, the changes in ATO interpretation of partner remuneration, how to generate tax efficiencies, market opportunities, a self-assessment of your financial situation and how to establish your own personal wealth plan.
You are also welcome to contact Ian Walker from Archer Gowland on 07 3002 2699 for a free and confidential discussion regarding your personal situation.
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