Tax Planning Overview

Tax planning is an essential part of any financial plan as almost every area of our financial lives can have tax consequences that are both good and bad. As tax is levied in so many areas it is important to have a complete professional opinion on how you can legally minimise your tax through different structures, products and strategies. Your financial planner is able to help advise and guide you through the most effective way to save on tax that can ultimately lead to a greater net wealth for you and your family.
No two people are alike and neither are their finances. It is important to seek professional tax advice from both a financial planner and accountant. As neither professional can 100% help you in all areas, accountants and financial planners work together to ensure all bases are covered.

There are 4 general tax environments that are available. They are:
0% - 15% - 30%

Marginal Tax Rate – this is the tax rate you pay on your income.
Some common examples that are available below.

Superannuation and retirement

Superannuation has tax between 0-30% depending on your circumstances, but with proper advice this can be minimised meaning your returns will be higher. Superannuation is the most tax effective environment which is used to promote long term savings for your retirement. Superannuation can often fund 1/3rd of your lifetime.


Structuring is the process of using vehicles and particular financial products to reduce your overall tax payable. In the case of a person earning an income over $80,000 may be better off using a vehicle or products that offer a tax rate of 30% over their 37% marginal tax rate. This will differ significantly with individual circumstances.

Estate Planning

Estate planning is planning for the transfer of assets from one entity to another. This could be when a person passes away and their loved ones inherit their assets. In this case, your loved ones that includes family, friends and relatives can be taxed up to 30% for receiving that inheritance for certain assets. Forward thinking can reduce a significant amount of this tax payable. This is just one example of estate planning that may be applicable to you.


Depending on the person who holds the insurance contact, whether it is in your personal name or in another name (eg a superannuation fund), there is often a tax deduction that can be claimed on the premium paid.

Investing using Debts

Debts can be a good way to build an investment over time and a great example of this is borrowing money to buy an investment property. This can lead to costs associated with the investment and borrowing that can be tax deductible against your tax payable at the end of a financial year.