When it comes to tax avoidance, it seems to be abnormal and illegal. In fact, tax avoidance is to allow yourself to be treated more fairly and not to pay taxes that you shouldn't pay. Many tax refund methods (the basic concepts you need to master when filing taxes in Australia) are legally recognized.
1. Invest in Australian real estate
Taxes can be deducted on interest, maintenance, and depreciation in the first few years. But it will be neutral in the fourth or fifth year. Will be positive gear in the future. If the house rent is higher than the interest, and there is a 4% increase in the property value every year, you should pay a little more tax (Australian Property Stamp Duty Calculator).
2. Margin Lending of stocks
Margin Lending of stocks is a kind of magnified investment. Use the Margin Lending of stocks to provide 25% by yourself and 75% from the bank. The advantage is that the interest of Margin Lending is tax deductible. Assuming that your stock’s Margin Lending earns 15%, if Margin Lending’s interest is 9% and your marginal tax rate is 45%, then you actually have a net profit of 15% – 9%x0.55 = 10.05%.
3. Salary Sacrifice to pension account
If you accidentally make a fortune in the Margin Lending of the stock, an emergency solution is to increase your Salary Sacrifice ratio. The Salary Sacrifice part only pays 15% tax, otherwise you have to pay tax at your marginal tax rate for the year.
4. Family Fund
Set up a family fund, especially for business operators. In this way, the profits from the business can be shared among every family member.
5. Couple tax avoidance
If the couple’s income is one high, one low, or one has nothing, you can get a tax benefit of up to $540 by buying a spouse’s pension for the low one, or you can change the average property owned by both parties to a higher proportion or a higher proportion. Fang pays housework wages for the low party (with written evidence), and saves hundreds of thousands of money by reducing the high tax rate.
6. Provincial tax for migrant workers
Union dues, sunglasses, non-slip shoes, etc. The tuition fees for enrolling and part-time job-related courses include self-study textbooks, reference materials, lectures, carriage fees, etc. Meals for overtime work. The cost of carriage, horseback, and missed meals for the second job. Temporary on-call telephone charges, mobile phone charges, subscription fees, etc. Register a small business to do the same part-time job instead of your personal name. These ways can help you get a tax refund. Generally speaking, there are not many items that can be taxed for dead migrant workers, but if they participate in diversified operations, there will be a variety of tax rebates. For example, after working in stocks, the annual number of transactions is more than 40 and the investment is tens of thousands. It is best to make money. If you lose money, you can report the loss. As a negative number, you can combine it in your annual income and pay less tax, which is equivalent to letting the tax bureau buy part of the bill for you.
7. Self-employed persons or small family businesses or home office tax avoidance
There are many reasonable expenses such as computer upgrades, repairs, batteries, car repairs, insurance, gasoline, entertaining customers, travel expenses (with certificates or records), depreciation of household equipment, wear and tear, part of lighting, heating, Internet access, cleaning, part of rent, telephone , Mobile phones, postage, stationery, some purchase fees, industry newspapers and magazines, membership fees, etc., can be reasonably declared for tax refunds. There are also specific tax filing items in various industries that you may not know about. You must consult your accountant.
8. How to pay less investment value-added tax
Try to live in the most value-added Australian property (if you have several Australian properties). Reasonably arrange investment housing for self-living for a period of time. If the assets (including stocks) owned are sold more than one year later, you can enjoy a 50% appreciation discount. Choose the method that is beneficial to you in the two methods of calculating the value added tax year by year and the average calculation. Try to sell your investment house when your annual income has dropped significantly (such as retirement, resignation, long illness, work injury). Implement prepayment of expenses, debt or provincial tax investment, or transfer income to your pension contributions, and only draw a small amount to meet life. These can reduce the value-added tax. Transferring assets below market value between family members does not reduce value-added tax. If you have invested in Australian real estate and want to get a pension when you retire, remember to transfer it five years before you plan to retire, otherwise it will still be included in your retirement assets.
9. Delayed income and early payment
Before June 6 of each year, negotiate with your employer to try to include flexible income for a certain period of time, such as retirement pension, severance pay, severance payment, bonus, dividends, annual leave, long-term service fee, sick leave, etc., and arrange it after 20. It can be postponed for one year to pay taxes on these expenses and provide an opportunity for further tax avoidance in the next year. It can also be understood as a one-year interest-free loan from the government. In the same way, there are many fees that should have been paid after 7.1, such as: scheduled professional newspaper fees, industry annual fees, business-related bills, annual car insurance premiums, loan interest for the next year, and some prepaid interest Investment products such as borrowing money for investment, charitable donations, donations to children’s schools, etc., are paid before 7.1, and tax rebates can be obtained this year, and the money will be available a year earlier.