Tax Tips
For years, they were the go‑to way for family trusts to cap tax at the company rate and avoid the sting of top marginal rates. A trust could simply pour excess income into a company, pay 25–30% tax, and hold profits there until it suited the family to draw them out. The entire strategy relied on one thing: the gap between personal tax rates and the company rate.
Negative gearing is set for its most significant change in decades, with the Federal Budget outlining a shift that will reshape how investment losses are treated for tax purposes. The reform affects property investors, share investors, and anyone using gearing strategies across different asset classes.
The Federal Budget has introduced the most significant changes to capital gains tax in more than two decades, affecting how gains are calculated and taxed across property, shares, and other long‑term assets.
Many of us got a bit of help from the government while we were studying, especially in those years when working much wasn’t really an option. But once we’re out earning a regular income, we start paying those loans back. How much you repay depends on your repayment income, which is a specific way the government works out what you owe each year.
When owning an investment property for either long-term or short-term tenants, it can all come from good intentions to fix up the place and make it better for everyone who lives there, and as an investment, you might think all expenses are deductible.
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