Business tax planning strategies

Who you could give an income to, to lower your tax returns:

• If your spouse is either a stay at home dad or mum not earning an income, you dispense some of your income to them
• You could save $180 on taxes if you give your child/ren $416 each.
• Like your child/ren and partner, you could give some money to your parents if they’re retired including your in-laws.
• If your grandparents are eligible tax residents, you could give them an income.
• If you have siblings under 18 who is on a lower income, you could give them an income
• If you donate to a charity or church, neither they nor you will pay tax on the contribution.
• In order to get your personal tax down, you may contribute to your super fund around $30,000-$35,000 per year depending on your age, as they [super funds] pay 15% of tax.
• If you have two businesses where one is gaining profit and the other is making a loss, you could allocate $50,000 to the business making a loss and pay no tax on the $50,000.

If you receive $40,000 in rent per annum however spent $50,000 in expenses such as council rates, ongoing maintenance fees and loan interest, you may be able to deduct $10,000 from your taxable income as you made $10,000 expenses than income. This is referred to as negative gearing.