Tax planning is an art form. Some tax professional advocate various methods of tax planning that often lose more actual money than paying tax in the first place. Amongst these are the agricultural projects. You then not only have to worry about the ATO but also about the weather and the financial stability of the company operating the project, i.e Great Southern, Tmbercorp.

Why would you invest in something that ends up being a dud trying to reduce your tax, where you lose all of your money (equivalent to 100 % tax), when you can tax plan with safety and reduce your tax by 10%, 30%, 50%. ?????

There are a number of very effective legitimate ways of reducing your tax as an individual investor or as a business. You need to have tax professionals looking after your interests that understand the tax law and ATO policies as well as  being sensible with effective strategies that will actually work for you.

There are a number that the ATO accepts, providing the correct documentation is in place. Many require you to elect a course of action.  This election has to be in writing but held by your Accountant and does not have to be advised to the ATO. The ATO may require it if they query or audit you but that is when the advice you have received really works for you.

One area for example, is the DIV 43 special writeoff for residential property constructed after 1985.  A property does not have to be a new construction to be able to claim this writeoff. We have a number of clients who have obtained a quantity surveyors report (accepted by the ATO) and have been able to claim depreciation writeoffs for rental properties. This has reduced their tax significantly…..and more importantly legitimately, without fear of the ATO arguing about it. 

If you have a tax planning query or if you would genuinely like to reduce your tax, then give us a call on 9832 0900 and book a free no obligation consultation to discuss your situation over a hot cuppa