Strategies for the legal minimisation of income tax may include:
- Actions which delay the recognition of income or accelerate tax deductions in the targeted tax year – i.e paying attention to the timing of transactions.
- Transactions which take advantage of tax concessions which have been deliberately written into the tax law, or where a lower-tax choice can be made e.g. instant tax write off of asset purchases
- (Much harder) Staying clear of technical traps which create unexpected tax liabilities, or which destroy the tax benefit of an otherwise effective tax strategy
In looking at actions which will reduce tax, the anti-avoidance rules must be kept in mind. Professional advice is an essential component of tax planning.
Arrangements which are artificial or contrived, and which would appear to have little rationale apart from the creation of a tax benefit are the subject of specific tax rules which negate the tax benefits and can involve penalties.
For some tax ideas, see
- Claims for clothing
- Reducing PAYG payments
- Transfer property to Super Fund – not tax avoidance
- Franking Credit Refunds Without A Tax Return
- What is salary sacrifice?
- Negative gearing
- End of year checklists
- Income thresholds for offsets, concessions and levies
- Rental property tax deductions
- For 2021-22: The cessation of employment tax trigger on tax deferred employee share schemes no longer applies from 1 July 2022.
This page was last modified on 2021-06-30