When looking to invest, tax is an important consideration. Imagine how much more cash flow you would have without having to pay tax. As a simple illustration, if you could invest $1 per month at 6% return per annum for 20 years, you would have approx $4,600 if no tax was payable, compared to $3,500 if you paid 40 per cent tax.

The question is: “How I can legally not pay tax?” [Read more...]

You thought we no longer had death duties but call it something else and we can see that the tax man can get a slice of your superannuation on your death if it goes to certain people.

Everyone who has children knows that the Bank of Mum and Dad is an institution that runs 24/7 everyday of every year and that even when our kids say they are independent they always know where to go in difficult times.

Unfortunately the tax man thinks differently and believes once your kids reach 18 they are no longer financially dependent on you and so,  tax part of your wealth if you send it to them on your death. [Read more...]

Protecting your assets against frivolous creditors is increasingly becoming a common concern. It has been quoted that Australia is closely following the trend of USA litigation numbers with NSW, Victoria and Queensland only just behind California where 1 in 3 people in the USA either sue someone or are being sued by someone.

Traditionally people have used trusts to protect their assets. A trust is useful in this regard as the individual does not own the asset; it is owned by the trust. Therefore if the individual is sued they have no assets to lose. The individual controls the trust but has no ownership. [Read more...]